06/16/2008
Can you provide an interpretation of Reg E Section 205.10? It states, "the financial institution must honor an oral stop-payment order made at least three business days before a scheduled debit. If the debit item is resubmitted, the institution must continue to honor the stop-payment order". It further states under revocation of authorization "once the financial institution has been notified that the consumer's authorization is no longer valid, it must block all future payments for the particular debit transmitted by the designated payee-originator." Is the bank covered if their policy is to place a stop payment for a specific time frame? Is the bank required to block all similar transactions (same originator not necessarily the same amount) indefinitely?
05/19/2008
I know that according to Reg E 205.6 (b) if a customer notifies the financial institution within 2 business days, the consumer's liability shall not exceed $50 for unauthorized transfers. My question is that if interest has to be paid back to the customer can this offset and included as part of the $50 customer liability?
05/12/2008
We have a customer that is disputing charges that had been done with her Visa/Checkcard. She just notified the bank last week, but after researching some of these charges took place back in Dec. 2007. The customer receives their monthly statements by e-mail, but according to them they have never been able to access these statements. But we have documentation that shows they view their account on a weekly basis from our website. What is our responsibility to our customer when in fact we know they were negligent?
03/17/2008
Under Reg E, Section 205.9(b) lists the transaction information that must be included on the periodic statement. Is this applicable to transfers that are initiated over the phone where the customer is making the request to a bank employee directly and not an automated phone system?
02/18/2008
My question is regarding Reg E concerning the placement of stop payments on ACH items. I was told that stop payments need to be placed indefinitely. I would think this would be up to the customer. Why would it be regulation to place a stop indefinitely without a known dollar amount, especially if you continue business with the payee? If the amount is not available all transactions from the payee will be returned. How true are these statements concerning stop payments on ACH transactions?
02/11/2008
We are in the process of converting to a self enrollment process for online banking. If our customer clicks "I agree" to accept the agreement and the wording to allow transfers is included in that agreement, do we need to send them a separate form which includes their signature for the transfer authorizations?
02/04/2008
A family member stole an expired debit card and has been using it undetected by the account holder the last year and a half. The expiration date is not validated at the ATM, so successful withdrawals were made. What is the bank's liability under Reg E?
12/17/2007
The passage below is part of John Burnett's response to a Reg E question concerning unauthorized transactions reported beyond 60 days from the statement delivery date. For example, if there was an unauthorized transaction (no access device used) that appeared on the customer's June statement and he or she is just now reporting it, must the bank reimburse the customer? My bank has been denying these claims as too old. Based on everything I've read, I believe the customer is not liable for these initial transactions, even though they appear on earlier statements. I am wondering what John meant by "unless the transaction is one in a series" in the article below. Could someone elaborate please? Your consumer/customer is entitled to enter a claim with you that an entry was unauthorized at any time (the 60 day limit in section 205.11 only covers the customer's right to the procedures in that section, not the customer's liability for unauthorized transfers, which is found in section 205.6). If the transaction is unauthorized, the customer is entitled to a refund unless the transaction is one in a series and took place more than 60 days after the statement was available that showed the first unauthorized transaction in the series.
10/08/2007
I can't seem to locate where in Reg E that it specifically states that all fees, specifically overdraft, must be included in the provisional credit - it only mentions interest. Can you please point me in the right direction?
10/01/2007
Does a business account have Reg E protection? If not, do we not take the claim and advise the customer they will need to resolve with the company that originated the transaction?