Reg E Guidelines On Debit Card Dispute

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Question:

One of my members is disputing a transaction made with her debit card. The transaction came out of her account twice. Only the first transaction was authorized. I am being told that since it was not fraud it does not fall under Reg E guidelines. I believe they are wrong but I need proof. Please help.

Answer:

Direct your naysayer to the definition of an electronic funds transfer error in Reg E 1005.11(a)

Definition of error. (1) Types of transfers or inquiries covered. The term "error" means:

(i) An unauthorized electronic fund transfer;

(ii) An incorrect electronic fund transfer to or from the consumer's account;

(iii) The omission of an electronic fund transfer from a periodic statement;

(iv) A computational or bookkeeping error made by the financial institution relating to an electronic fund transfer;

(v) The consumer's receipt of an incorrect amount of money from an electronic terminal;

(vi) An electronic fund transfer not identified in accordance with § 1005.9 or § 1005.10(a); or

(vii) The consumer's request for documentation required by § 1005.9 or § 1005.10(a) or for additional information or clarification concerning an electronic fund transfer, including a request the consumer makes to determine whether an error exists under paragraphs (a)(1)(i) through (vi) of this section.

A duplicate charge is an "incorrect electronic funds transfer to or from a customer's account." Reg E covers a lot more than just fraudulent transactions.