Answer:
Refer to Section 205.11(b):
A financial institution shall comply with the requirements of this section with respect to any oral or written notice of error from the consumer that:
a. Is received by the institution no later than 60 days after the institution sends the periodic statement or provides passbook documentation on which the alleged error is first reflected;
b. Enables the institution to identify the consumer’s name and account number; and
c. Indicates why the consumer believes an error exists and includes to the extent possible the type, date and amount of the error.
You must respond to this error because the customer notified you orally. His lack of response is a red flag, but not a reason to deny the claim. You can't tell him he doesn't have charge back rights because he hasn't responded to your request. I understand this puts you in between a rock and hard place, but you must continue to investigate. Unless you can provide evidence he didn't authorize this charge, you must provide credit to this customer.
First published on BankersOnline.com 9/29/08
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