Where there are multiple customer notices of error given at the same time, may a bank send one provisional credit notice cumulating all the balances and one final resolution notice so long as the transactions are identified?

When bank receives notice from card processor that there were errors on multiple transactions, and those determinations are received by bank on several different dates, due to multiple transactions, should multiple final resolution notice(s) be provided by bank to the customers to comply with the "within 3 business days of completing investigation" requirement?

Thanks!

Yes. The Regulation only requires that you correct the error(s). As long as the customer is made whole for all unauthorized transactions, lost interest, and service fees, you may issue one credit.



Again, the answer is yes. Some institutions will hang on to that final notification until they have heard from their card processor on every single disputed charge, but this does violate the 3 business day requirement. Once you have enough information to make a determination on one or more disputed charges, go ahead and send a letter.

Since I also provide a lump sum provisional credit, I will have a statement in my letter informing the cardholder that I have finalized $XX.XX of their provisional credit and am continuing to investigate the remaining $XX.XX. I will also again remind them of the deadline for the final resolution so that they know how much longer I have to complete the investigation.

do notices HAVE to be in writing under 12CFR 205.11 - Or, can they be made orally?

The only notice that must be in writing is if you determine that no error has occured, and you must give the customer the oppotunity to request the documents you used to make your decision.

d) Procedures if financial institution determines no error or different error occurred. In addition to following the procedures specified in paragraph (c) of this section, the financial institution shall follow the procedures set forth in this paragraph (d) if it determines that no error occurred or that an error occurred in a manner or amount different from that described by the consumer:

(1) Written explanation. The institution's report of the results of its investigation shall include a written explanation of the institution's findings and shall note the consumer's right to request the documents that the institution relied on in making its determination. Upon request, the institution shall promptly provide copies of the documents.


If you choose to provide notice of provisional credit and final credit orally, make sure your procedures have a means for you to document this so you can demostrate compliance.