I do not believe that e-checks are covered by Reg E but am not sure and I cannot find information what regulation covers them. I have searched BOL but have not been able to find information. We have a dispute on items older than 30 days, and I'm not sure what our liability is. Thank you for any help you can provide.

Assuming we know what you mean by an E-Check, any transaction that is initiated electronically would be covered under Regulation E, whether the payment is ultimately submitted to the bank via an ATM or ACH network, or a physical check is created and processed through normal check clearing methods. Who and how were the E-Checks create.

Agree with Randy that we need more information. Are we talking about remotely created checks created by the payee? Bill payment checks created by your online banking vendor? Something else?

The electronic check I am talking about was an electronic check that was created by a subscription merchant (the merchant appears to be a payment processor for several internet companies - this member was billed for an identity theft program, a coupon service, and a doctor chat app). The e-checks clear just like a check the member has written - it is not on the ACH rails.

Reg CC 229.35(b) notes that a bank of first deposit that accepts a remotely created check is liable under the Uniform Commercial Code Section 4-406 for breach of its presentment warranty. In most states, a customer has up to one year to notify the financial institution of an unauthorized item unless you have shorted this timeframe by your deposit agreement.

The Federal Reserve accepts returns of unauthorized remotely created checks up to 90 calendar days from the date of presentment according to their Check Adjusments Quick Reference Guide. Outside of 90 days you will need to send a without entry claim to the bank of first deposit.

If you are not sure of the application of your state Uniform Commercial Code or terms of your deposit contract, you should ask legal counsel to review.

Thank you Brian!