08/25/2024
Scenario: A bank employee inadvertently makes an error while processing a payment authorized by phone by the customer, for example, customer authorized his/her personal loan monthly payment of $100 but the employee processes a debit for $101, or $96.
Could this be considered an unauthorized electronic fund based on the amount error? Can this be considered a violation of other consumer protection law/reg? UDAAP?
08/11/2024
Can a merchant force a debit card transaction by claiming that the transaction is a recurring transaction event though it's not? For example, the customer opted out of overdraft service for ATM and one-time POS debit card transactions, but a merchant forced the transaction by claiming it's recurring.
01/07/2024
Reg E (12 CFR 1005.17(b)(2)) says we cannot condition the payment of checks and other transaction on the whether the consumer has opted into overdrafts via ATM and one-time debit card transactions. However, it does not clarify whether the opposite is allowed – meaning can you condition ATM and one-time debit card transactions on whether someone has opted into overdrafts via check and other transactions? I can't find any guidance on this question, so any advice is much appreciated.
01/07/2024
We currently have outside counsel providing what I believe is inaccurate guidance. However, I'm struggling to find resources I can use to refute their regulatory interpretations. Specifically, this applies to a consumer's right to stop payment under 1005.10(c). Can you please advise how these requirements apply to:
1. Preauthorized transfers for loan payments (we are the lender/servicer) drawn on both external (we obtain debit authorization) and internal deposit accounts; and
2. Preauthorized bill payments both issued against the bank's/vendor's account and debited directly from the consumer's account. We hold the consumer's deposit account and offer the bill pay service.
02/26/2023
A customer made a payment using Venmo over the weekend and it is pending against their account first thing Monday. The customer has discovered the transaction is a scam. Our customer has contacted Venmo who said there was nothing they could do. Can the bank put a stop payment on this payment?
02/26/2023
Is there an exception to Reg E that allows us to reverse provisional credit in the event of a merchant credit to the customer? If so, is there a time limit?
02/06/2022
Has the number of monthly electronic funds transfer for overdraft protections changed recently?
07/25/2021
During a review of the account, we noticed several transactions to Cash App, to the same people from last December and one in January. These were NOT disputed. Should we inquire about these transactions? If so, could we start our calculation from the statement date (plus 60 days) from the statement with the first unauthorized transaction? Does it make a difference that the December, the May and June transactions were on different cards? (The customer has had multiple cards.)
06/06/2021
What is the bank's responsibility when it comes to online banking fraud? We have a customer, his niece got ahold of his account number, signed him up for online banking, sent out P2P payments to herself and others, and now he's negative in his account. He did file a police report against her. Does this fall on the customer or the bank?
05/09/2021
Recently my bank began to duplicate ATM withdrawals for some customers. For one customer alone it could amount to several thousand dollars. This went on for months before the customer and the bank discovered the problem.
At that time the customer sent an email to our helpline asking for assistance and claiming that she had not made the duplicate withdrawals herself. I’m inclined to let her go through the process of trying to prove that she did not make these withdrawals herself. She was in Mexico and I believe it will be very hard to get a Mexican bank to help her.
Unfortunately our customer assistance sent her a reply stating that the bank had a known issue creating duplicates for ATM withdrawals. Otherwise how can she prove it?
Are we in any danger if she does take legal action? Since she is in Mexico I had the customer service write her back and tell her she needs to go to her local bank and take care of it herself. That has been our standard reply since for similar claims. If she takes legal action what are the odds that we would lose and have to pay her back all that money? Can we simply delete the email we sent to her saying we had a known issue with duplicates on ATM withdrawals? Then she’d have no proof whatsoever. Please advise.