Reg E - Untimely Notice

Let's assume that the first error occurs in March and shows up on a statement delivered on 3/31/xx. That means the 60th day for section 205.6 purposes is 5/30/xx. If no access device is involved in the unauthorized transfers, if an unaccepted access device is used or if the customer never notices until after 5/30/xx that his accepted access device was used, the customer is only liable for the unauthorized transfers occurring after 5/30/xx regardless of how long after 5/30/xx the customer notifies the bank. Only if the customer did notice that his access device was lost or stolen (and that access device is involved in the unauthorized transfers) is the customer liable for some of the unauthorized transactions occurring on or before 5/30/xx, subject to the $50/$500 limits in sections 205.6(b)(1) and 205.6(b)(2).

First published on BankersOnline.com 1/19/09