FACT ACT - Direct Dispute Notice

After we receive the direct dispute notice, do we have 30 days to investigate just like we do for disputes received through the CRA?

Do we have to provide notice to the consumer of the outcome of the investigation? Is it 5 business days like it is for a frivolous or irrelevant dispute?

thanks,

You have 30 days to investigate, unless the customer provides new info during the investigation, in which case you get another 15 days. You have to also respond to the customer during that time period.

Do we need to respond to the customer in writing?

I could be missing it, but as far as I can see, it just says notify the customer. Doesn't say how. The five day frivolous notice is supposed to be mailed, but I can't find anything on the method of delivering the notice if the customer was right.

Does anyone have a Direct Dispute Form they have developed that they would be willing to share?

soccer - pm me and I will send what I have.

Where do I find the requirements for this new Final ruling? I have been to the FTC site and couldn't find anything really helpful. I searched and found the link below.

31484 Federal Register / Vol. 74, No. 125 / Wednesday, July 1, 2009 / Rules and Regulations

So in a nut shell what do we have to do as a financial organization to give notice that we can now be contacted for direct disputes?

To my knowledge you don't have to actually tell anyone "Hey we will investigate your disputes now." The requirement is that you have to investigate if they give you written notice (instead of what we could do before by telling them to dispute it through the CRAs).

The caveat would be if you want to have all direct disputes directed to a central address. You have to notify your customers of that address via the CRA and another direct notification of your choosing. Most people I have talked to are not stipulating a central address for receiving direct disputes, but simply writing in their procedures that disputes can be delivered to any of the bank's branches and the branch will forward to the person/dept in charge of investigating.

If you don't mind, plesae share that Direct Dispute Notice with me too.

I would appreciate receiving a copy of your dispute notice. thanks you.

Linda.Fox@bankatfirst.com

If you wouldn't mind, I would also like to have a copy of your form. Thanks.

deh: Did you ever find a resource of information on the new ruling? I have been to the FTC the FDIC and so on too and cannot find any guidance.

Here's a link to the reg. Check out Subpart E.

Have I missed what the retention period for disputes is?

I couldn't find any retention period for disputes either. We settled on 5 years.

Five years is probably a good choice:

§ 618. Jurisdiction of courts; limitation of actions [15 U.S.C. § 1681p]
An action to enforce any liability created under this title may be brought in any appropriate United States district court, without regard to the amount in controversy, or in any other court of competent jurisdiction, not later than the earlier of (1) 2 years after the date of discovery by the plaintiff of the violation that is the basis for such liability; or (2) 5 years after the date on which the violation that is the basis for such liability occurs.