Skip to content

Debit Card Transactions Covered by Reg E

Answered by: 

Question: 
We have received debit card disputes from multiple customers that believed they were making arrangements to purchase a pet from someone that posted an ad on Facebook. In each case, the customer selected a pet from a photo they received from the "seller" and then sent money as instructed via PayPal, Zelle, Western Union, etc. All transactions were initiated with debit card information. After payment was sent, each customer realized/decided that they are most likely the victim of a scam, and no pet will be received. Are these transactions fully covered by Reg E? I'm struggling to come to a conclusion, because at least one customer is unable to provide documentation that indicates when the pet is expected to be received. In all cases, the customers willingly provided their card information and sent money to someone they do not know.
Answer: 

They are not covered under Regulation E, as the transactions were not unauthorized.

First published on 06/23/2019

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics