We often have customers file 'legitimate' reg E disputes, but a week or month later, during our investigation, they figure out or determine that they did authorize the charge and we have them 'withdraw' their claim in writing. Sometimes, our investigation leads to the point where we go back to the custoemer with information about the charge that indicates that they did in fact authorize the charge, or, a joint account holder authorized the charge. At that time, they are asked to send in a withdrawal letter rescinding the claim. I think that we should deny the cliam under Reg E and revoke provisional credit with the 5-day coverage of overdrafts. However, with the way they do it, the claim is withdrawn and it's no longer treated like an 'error' so they send a special rescind letter revoking the provisional credit, but that letter doesn't have the 5 day protection.

If a consumer sends us notice stating that 'they made a mistake' and the error wasn't really an error - whether it's one day or 40 days after they notify us of a dispute, are any of the Reg E protections or rules still in play?

Asking the customer to revoke or rescind the claim is resulting in a denial of the customer's right under Regulation E to a 5-day "grace period" attached to revocation of a provisional credit. I think it's a suspect practice, exposing the bank to criticism.

The purpose of the five-day feature is to avoid pushing the customer into an overdraft status by taking away funds that he or she has been entitled to use. It is not something the customer can waive.