Can't take provisional credit after a claim is final

That is correct. If the deadline approached, the bank had to complete the process to comply with the reg. If the merchant refunds the consumer after that, the bank can ask for the return of the funds because there is no intent in the law to have consumers profit from a claim at the expense of the bank. The intent is to make the consumer whole. But there is no allowance for a bank to debit a consumer's account AFTER the claim is finalized. The bank is authorized to debit the provisional credit and that ability extends only for the duration of the claim. After the claim is finalized, the bank made the provisional credit permanent, so it can no longer be retracted.