Posted By: CAKE
Provisional credit - 12/19/05 10:29 PM
If a customer closes out all of their accounts before provisional credit can be given, does the customer relinquish their dispute privileges?
No. Reg E requires you to provide provisional credit. I don't know why the customer closed out their account. Maybe they think they can help stop the unauthorized debits this way.
Posted By: CAKE
Re: Provisional credit - 12/20/05 05:28 PM
How am I supposed to credit the customer's account when they no longer bank with us?
Posted By: John Burnett
Re: Provisional credit - 12/20/05 05:38 PM
You reopen the old account and notify the customer of that fact when you tell them you've provisionally recredited it. This is a royal pain for the bank, but there's just no way around it. The provisional credit can't be skipped based on the account's having been closed.