A customer's account was closed due to continuous overdrafts with a negative balance over a year ago. The customer is now disputing the amount he owes us and I don't think he's going to be easy to handle. Does anyone have any suggestions on how I should handle this customer? Does Reg E. Error resolution apply? (I don't believe that it does.) Are there any procedures I should follow to prove to him that our figures are correct? Can we charge him for the research required to get the proof? Any suggestions would be greatly appreciated.

On what grounds is the customer disputing the amount owed? Is he claiming that the overdrafts were caused by unauthorized transactions? And if so, are the disputed transactions in Reg E or UCC jurisdiction?

The customer is disputing the amount that he owes us. I don't think that it has anything to do with unauthorized transactions. I believe that most of the monies owed us is probably overdraft fees.

Should we ask him to give us his dispute in writing (with details on the reason he believes this amount is not correct)? Let me add that he says that he doesn't have his bank statements anymore.

If he can't give you specific transactions on which he bases his dispute, then he's likely doing nothing more than starting a pi$$ing contest. As such, I think your best course of action is to request a written dispute from him. Specifically, ask him to note the amount of the discrepancy, the nature of the bank's error, and the transaction(s) that he believed caused this error.

Thanks JacFSB for your replies. I agree that he is just starting a pi$$ing match. That's why I am trying to handle this carefully to minimize the pi$$ing if I can.
Do you think it is out of line to charge him for the research we will have to do?

Not at all.....I would recommend charging for reproducing statements, checks, etc. and also charge an hourly rate for research (as long as he is incorrect in his allegations).

My first question is he still a customer of your bank? You say this is fees owed from a closed account. Are we talking a great sum here? Or just a few hundred dollars? If they are still a customer, do you wish them to remain one? Did you close the account due to negative balances? Or did the customer close it? I'm assumming you did, as you (hopefully) will not allow a customer to close an account that is negative. Is it worth the time and effort to pursue this customer for the fees?

Have you considered turning this over to a collection agency? Or sending his name into the credit bureaus as non-pay? From what you have written, it will be like pulling teeth to get the information, and even if you provide him with the statements showing what is owed, he will continue to dispute.