We have accounts that have debit cards. Can we still make a requirement that restricts paper statements from being delivered? Can we make it a requirement to have e-statement or none?
We have a customer who submitted a Reg E claim for unauthorized ATM withdrawals. She believes her son did this. The son was prosecuted last year for residential burglary. The customer claims that she went on vacation and her card and PIN were stolen from her safe. She also stated that she left a list (alarm codes, combo for the safe, etc), for her husband who didn't lock it. Obviously, it wasn't hard for the son to get into the safe. The amount of loss is $2555.00. Isn't there anything in Reg E for contributory negligence?
We are working on a project to make debit card access available to some of our commercial accounts, primarily to give them more flexibility with respect to purchases for their businesses. One of our questions concerns liability for debit card errors or fraudulent transactions. Should we simply "borrow" the provisions of Regulation E by reference in our documents, or should we be going in a different direction?
Regarding automated telephone banking systems, customers can currently inquire (get account balance and info) by phone with their account number and last four digits of their SSN. If they want to transfer funds between their accounts, they must complete an application. My bank wants to give automatic access to transfers too. I'm concerned about Reg E issuing access device rules. Is calling the number and following the steps, "requesting" the access? We have new operations personnel who say all banks do this automatically. Other banks don't have customers fill out a form or call and talk to someone, it is all done through the automated phone system. Does this comply?
With all the new advances in online banking, what are the rules concerning online banking transfers between two business accounts (corporate, LLC, partnership) with two different tax ID numbers, but both are owned by the same person?
I'm the compliance officer at a small community bank. We do not offer remote deposit capture, but from what I understand, some of our bank's commercial deposit customers have gone out on their own initiative and obtained RDC services from various third parties. Our customers are then using this platform to make deposits to their accounts at our bank. This would seem to involve risks to our bank, but I'm getting a lot of push-back from the sales side, that because our bank had nothing to do with the customer's decision to enroll in or obtain these RDC services, the bank has absolutely no risk. I'm not as convinced about that. Any help and or guidance appreciated.
My question is related to PART 205—ELECTRONIC FUND TRANSFERS (REGULATION E) Section 205.17 Requirements for overdraft services. <i>(iv) Provides the consumer with confirmation of the consumer's consent in writing, or if the consumer agrees, electronically, which includes a statement informing the consumer of the right to revoke such consent.</i> For new accounts, will this requirement for confirmation be satisfied if the new account disclosures contain the appropriate language, or are we required to mail a separate confirmation to the customer who opts in after the fact?
Can you cite any regulatory prohibition, industry best-practices or any other guidance regarding the commingling of funds conducted via web-based transfers between linked personal and business(corp., llc.) accounts, owned or otherwise controlled by the same person? Information from the IRS on this subject is vague. My gut feeling is that this activity raises potential tax evasion issues and may be a reportable offense under SAR guidelines.
I know that if a customer loses his ATM card and has the PIN written on it we can’t hold that against him, but can we deny a claim if he loans the card to a family member for a one-time transaction and the family member goes overboard with multiple unauthorized transactions?
When a business customer wants to view his accounts online and also make transfers, is there an agreement that needs to be signed stating which of his employees can have access to this capability? We do not know who of that business is making a transfer or inquiry, therefore we cannot monitor that activity. I would think that the bank is not liable and has no control. Is this correct?