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Multiple Reg E Claims - Customer Uncooperative

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Question: 
We have a customer who filed several Reg E claims. During our investigation we referred the claim to our Security Director who wanted to meet with the customer to discuss the possible identification of a party caught on video. The customer has not returned numerous phone calls and e-mails. Can we refuse the claim for lack of cooperation on the customer's part?
Answer: 

First, let's look at the definition of "unauthorized electronic funds transfer" in Section 205.2(m) (with my emphasis added):

"…means an electronic fund transfer from a consumer’s account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit. The term does not include an electronic fund transfer initiated:

a. By a person who was furnished the access device to the consumer’s account by the consumer, unless the consumer has notified the financial institution that transfers by that person are no longer authorized;

b. With fraudulent intent by the consumer or any person acting in concert with the consumer; or,

c. By the financial institution or its employee."

These may be legitimate claims, but if your customer won't correspond with you after numerous attempts, I would simply deny the claim, document the facts and send the customer a letter stating you are denying their request (and tell them why).

First published on BankersOnline.com 2/21/11

First published on 02/21/2011

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