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Reg E Error Resolution - Unauthorized ATM withdrawals

Question: 
I work for a small institution where we do not have cameras at our ATMs, and we are finding more and more that banks are unwilling to release photos on ATM transactions when unauthorized transactions occur. We cuurently have a client that is disputing three ATM withdrawals totaling $1,160.00. She had her card in her possession at the time she went to the branch to file the dispute. She claims no one has access to her card or PIN. There have been no attempts to use the card number since the day it was blocked, leading me to believe her card was not skimmed. I would like to request ATM pictures, if possible. They were done at three different PNC ATMs in Philadelphia. The bank has already informed us that they will not release photos.I see this as a simple denial because the customer has card and pin in her possesion. Would everyone else just deny this claim. If so, and customer re-asserts the claim, what would be some of the actions one might take to help resolve it for the customer?
Answer: 

Answer by Randy Carey:"There have been no attempts to use the card number since the day it was blocked, leading me to believe her card was not skimmed."

What makes you think that? You really have nothing on which to base a claim denial. This would be considered a cost of doing business. Issuing ATM cards is not without risk to the bank.

Answer: 

Answer by Andy Zavoina:I agree with Randy. You need more than that to deny a claim, and I never recommend denial because the customer had the card in his/her possession. Here are some questions to ask yourself:

  • Was the customer in this area at the time of the WDs?
  • Were valid charges made around this time?
  • If yes, in relation to location, how far apart are they?
  • Does your customer use these ATMs?
  • Can you pay PNC for the photos?
  • Has the customer made other claims?
  • How long did it take to get notice of the claim?
  • Has the customer made online purchases with the card before this?
  • Is this claim similar to any others?

First published on BankersOnline.com 6/30/08

First published on 06/30/2008

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