written notification and liability

Posted By: Bailey.

written notification and liability - 02/12/08 02:33 PM

In Reg E limbo here -

Section .11(b)(1) requires the customer to give sufficient info to the bank to identify the disputed transaction. This can be orally. Time clock starts here.

Section .11(b)(2) says the bank can require written confirmation, and Section .11(c)(2) says the bank can extend the investigation period to 45 c. days w/o giving provisional credit if written confirmation is not received w/in 10 b. days.

OK, so now I've come to the end of reading Sections .11 and .6, as well as the commentary for each, and I don't see this key answer -

***What if the bank has concluded its investigation, and still has not received the required written confirmation? Can the bank deny reimbursement to the customer based solely on this? And where on Earth is this addressed?
Posted By: rlcarey

Re: written notification and liability - 02/12/08 08:13 PM

There is no "requirement" that the customer ever give you a written confirmation. You still have to proceed.
Posted By: Bailey.

Re: written notification and liability - 02/12/08 09:07 PM

I don't think I was clear enough, sorry.

My bank imposes Reg E's option to require a written confirmation as a follow-up to oral notification. So if, by the end of the investigation period, the customer has not submitted that written statement, can the bank withhold reimbursement?
Posted By: C_Groat

Re: written notification and liability - 02/12/08 09:23 PM

The non receipt of the written statement by the 10th business day only affords you with not needing to issue provisional credit by the 10th business day, your decision to honor or deny must still be on the facts and not based on the receipt of a written letter.
Posted By: Andy_Z

Re: written notification and liability - 02/13/08 03:20 PM

I agree with C. You can ask for a written claim and that impacts provisional credit only. The claim goes on. You can't base the final outcome of the claim on something the consumer isn't required to do in the first place.
Posted By: Bailey.

Re: written notification and liability - 02/14/08 08:46 PM

Thanks to all!