Written Notification

Posted By: Anonymous

Written Notification - 09/23/04 02:43 PM

Am I correct in thinking that written notification of the results of a Reg E dispute is only required when the bank determines no error or different error occured?

My audit supervisor is saying we have to send them a written notice (separate from their statement)even if we determine the transaction was unauthorized.
Posted By: Andy_Z

Re: Written Notification - 09/23/04 05:49 PM

Quote:

My audit supervisor is saying we have to send them a written notice (separate from their statement)even if we determine the transaction was unauthorized.




205.11(d) applies when no error or a different error occurred. The written explanation requirement is under this at (d)(1). So it doesn't apply if there was no error.

But for the record, I like to see a letter go out to close the case. It defines what happened, why and provides an accounting of what was paid and why. It is a solid audit trail and follows the KISS method. Using template letters this should not be a burden, considering the accountability benefits. You may be less restrictive of the total content of the letter and the timing to make things easier.