A mother gives a son her ATM card and her PIN to use. The son and his wife steal the card a week later and over the weekend withdraw $951.00 from the mother's account. The brother, who is not on the account calls to report the card lost and the card is placed on hot card status. The CSR is a neighbor and insists we give her money back immediately. Does the bank have any basis for not returning the money when according to REG E it was reported within the time frame? Is there any way that we can use the fact that we were told that the mother had previously given the son her card and number? Where can I find more information concerning the liability of the bank in such cases?
In Reg. E, transfers initiated by telephone can be included and excluded from coverage based on some conditions. What are those conditions?
We do not open accounts online. The Reg E disclosure on our Bank's Web site covers the types of transfers that are allowed for Online Banking along with fees, documentation, Financial Institution's Liability, Confidentiality, Unauthorized Transfers, Error Resolution Notice, etc. (i.e., things we don't need), but this disclosure does not include other EFTs, such as check conversion. Is it required here? The Reg E disclosures provided to customers other than on the Web (new account, debit card application, etc.) do include that type of EFTs.
I have a customer who has unauthorized transactions on his checking account which go back to Jan. 2003. He just notified the bank on 01/22/04 that he became aware of the unauthorized activity in Oct 2003. The customer knows that a family member performed the unauthorized transactions. Under the circumstances, is the bank responsible for the losses? The customer did file a police report, but is hesitant to file a criminal complaint or press charges. He wants to recover the loss from the bank.
Our bank has several Christmas Club accounts that accept payroll deduction direct deposit credits from one of our significant business customers. Many of their employees have no other deposit relationship with our bank. Do we have to issue a statement on these club accounts under Regulation E?
If an entity offers a customer a stored value card, is there a limit at $200 whereby below that limit, the entity does not have to follow Reg E?
If a customer supplies card number, name, address, PIN, CVV values and expiration date via an email to someone who asks for it, and then that person creates a card and uses it to withdraw funds from an ATM, does the cardholder have any liability due to negligence? If not, given today's fraud environment is light year's beyond what was envisioned when Reg E was enacted, should the regulations be updated to define some standard of cardholder liability for negligence?
We recently had a compliance exam and the examiner mentioned that we should be tracking automatic loan payment errors (from a checking account held at our bank to a loan held at our bank) since this falls under Reg E. We had not been doing this since Reg E excludes transfers to intra-bank accounts. Do automatic loan payments fall under Reg E rules/procedures?
Do outgoing wire transfers count in the Reg D limits? If so, are they included in the 3 limit or the 6 limit?
Two weeks ago a customer notified our Bank in writing that they are claiming unauthorized EFT transactions that appear on their statement from four months ago, three months ago, and two months ago , and EFT transactions that have occured from within the first two weeks of this month. My question is, under Reg E, isn't the customer liable for only $50 of any of the disputed EFT transactions that have occurred in the period of time up to when they notified us two weeks ago?