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Taking Back a Final Credit for Unauthorized DC

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Question: 
If a Final Credit is given to a customer for an Unauthorized Debit Card Transaction, but later the merchant also reverses the debit (or gives a credit), can the bank send another letter to the customer explaining since they got the credit twice, we are taking our Final Credit Back?
Answer: 

Although it's an issue of semantics, I generally recommend against reversing "final credit" as an examiner may cite you for a Reg E violation. That being said, your customer is not entitled to profit from a dispute as this is unjust enrichment. Send your customer a letter stating that you are reversing the "duplicate" credit to the account.

First published on BankersOnline.com 5/14/12

First published on 05/14/2012

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