Most Popular Compliance Content
Is this a lottery or a sweepstakes?
01/05/2025
Our debit card vendor, TransFund, is doing a 50th Anniversary giveaway to its cardholders. In order for our cardholders to be eligible, we have to register our bank for the giveaway. If we do register our bank, every time our cardholders use their TransFund debit card for a qualifying purchase, they are automatically entered to win. TransFund will be awarding a $1,000 winner each month, qualifying them to win their choice of a new car, valued up to $50,000. In addition, TransFund will be giving away $500 per month to a qualifying cardholder who uses a TransFund ATM. TransFund is calling this a sweepstakes, but wouldn't this be considered a lottery? Can our bank register for this and then market it to our customers? I'm having a hard time understanding why a debit card vendor that does business with hundreds of banks in different states would put them at risk with the law by offering a lottery to its customers. I'm hoping my understanding of a lottery is just wrong. Any guidance you can give me, would be greatly appreciated.
Who's responsible for delayed billing?
01/05/2025
We have a customer that used a debit card to rent a car on 11/22/2022. The preauthorization amount was for $854.60. The customer has since disappeared. The rental car company has finally sent through a posting transaction on 03/13/2023 using that original authorization in the amount of $38,843.18. Can the rental company send that much through using the same authorization? Is there a time frame the merchant has to complete the transaction? Can I dispute this transaction through ACH or credit/debit card rules or something else?
Commercial accounts and E-SIGN
12/29/2024
Do business transactions apply to ESIGN - Electronic Signatures in Global and National Commerce Act?
Handling Reg E "Dated" Claims
12/29/2024
In July, a customer submitted a Reg E dispute for debit card transactions which happened in March, April, and May. The first statement was in April. The customer still has his card. The dispute team processed the claim, eventually finalizing it by crediting the customer for the first statement plus 60 and denying the remainder. Earlier this month (September), the customer filed another claim for the same merchants but for an earlier period, December-February. Do you agree that this must be treated as a separate claim because the first one was already made final? If the second claim came in before the first was closed I am assuming we can combine the two since the same merchants are being disputed.
HMDA Reportable Transaction Exclusions
12/22/2024
I actually referenced these as well which is what I used to support my interpretation; however, the other interpretation I heard the reason they said they got to that was following the citations along with the HMDA reportable transaction exclusions. So 12 CFR § 1002.104(b)(2) then if you go to the citation referenced there 12 CFR 1003.2(e) then go to the 1003.3 (C) referenced there. So looking at those exclusions it doesn’t mention anything in regards to if your bank is in an MSA or not but #11 references FI that have fewer than 25 loans. Hence, that being their reasoning that the only way non HMDA banks would exclude HMDA transactions was if they were non-HMDA due to loan volume. I’m not disagreeing with your answer because that was our interpretation as well but when following the citations that they used to come up with their interpretation and can see why they would maybe think that.”