Answer:
Given all of the ink and electrons used discussing the Error Resolution provisions of Section 1005.11, one would think that the Bureau or, earlier, the Fed might have considered rewriting the whole section to make it more readily understood. As it stands, however, its very language promotes questions like the one you've raised.
Check out comment 11(c)-6 in Supplement I to the regulation:
6. Correction of an error. If the financial institution determines an error occurred, within either the 10-day or 45-day period, it must correct the error (subject to the liability provisions of Section Section 1005.6(a) and (b)) including, where applicable, the crediting of interest and the refunding of any fees imposed by the institution. In a combined credit/EFT transaction, for example, the institution must refund any finance charges incurred as a result of the error. The institution need not refund fees that would have been imposed whether or not the error occurred.
It seems clear that the intent is that the consumer be made whole as to an error, and that includes fees imposed by the institution resulting from the error and, by implication, interest that would have been paid to the consumer but for the error. Given that the 10-day and 45-day (or 90-day) periods are discussed together in the comment, I think it's reasonable to assume that the final resolution of the error claim ought to include fee refunds and interest adjustments, regardless of when the final resolution takes place.
First published on BankersOnline.com 9/10/12
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