Reg E claim- Reassertion?

Posted By: BetsyS

Reg E claim- Reassertion? - 03/08/11 01:34 AM

In mid-December, an elderly customer requested additional information on ACH debits she did not recognize on her account. The transactions began in Jan 2010 and total over $5000. I got the additional information she requested and assisted her in contacting some of the Originators for more details. It became apparent that the entries were originated by her live-in adult son in her name. I gave her the option to submit a claim, but she chose not to because she did not want her son to get into trouble. (We would file a police report on any loss the bank took)

This is a long-time customer, and although she was quite lucid at the time, she has been having memory issues the last month or so. Her daughter, who is a named co-owner of the account, is getting involved with her finances and would now like to assert a claim.

What is our responsibility and liability under Reg E? Would this fall under 205.11e Reassertion of Error? The mother declined to assert an error after receiving the additional information from her first request. By declining to assert a claim, did she approve them? If she had asserted her claim in December, we stood to recover the majority of the money but we are now past the return timeframe.
Posted By: AuditorK

Re: Reg E claim- Reassertion? - 03/08/11 02:09 PM

I may be wrong, and someone please correct me if I am, but I don't think she make a claim on the same items that were already investigated months ago and withdrawn by the customer.
Posted By: Andy_Z

Re: Reg E claim- Reassertion? - 03/11/11 08:57 PM

If no claim was originally asserted, it isn't a reassertion. The theory is you investigated a claim and arrived at an answer. The customer then wants you to go through it again, and that makes no sense. That hasn't happened here.

At best you provided transaction information and after the fact, the account owner determined there was no error on which to make a claim. For the other owner to now assume differently, when the first is no longer of sound mind, is an error, in my opinion.

This one isn't easy and I could see it go either way. It depends on the information you have, and the value of the account.
Posted By: BetsyS

Re: Reg E claim- Reassertion? - 03/15/11 05:03 PM

Thanks for your input Andy. It is a difficult situation, and a tough call.