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Reg E Untimely Debit Card Dispute

Question: 
If we have a customer file an untimely debit card dispute on an unauthorized card transaction are we required, under Reg E, to refund overdraft fees that occurred after the 60 day period?
Answer: 

If, by "untimely" you mean that the claim is made more than 60 days after the statement showing the allegedly unauthorized transaction, the claim won't be subject to section 1005.11, which is where we find the requirement to refund any fees imposed by your bank resulting from the posting of the transaction in question.

If the bank determines that the transaction in question was not authorized, and is not the responsibility of the consumer under section 1005.6(b)(3), the regulation is silent on refunding fees that would not have been charged but for the posting of the unauthorized transaction. On the other hand, it is also silent concerning whether any such fees are the responsibility of the consumer.

But I don't think that's a sound argument for saying you would not need to refund such fees, because there is a fundamental premise that a consumer should not incur a fee for a transaction the consumer did not authorize.

First published on 10/03/2021

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