Who/what is the final arbriter in a Reg E dispute? If he was to file a complaint with the regulators, do they decide whether we owe the money?

We have a customer who claims over $10,000 in funds have been taken from his account over the past 4 months. He has given us numerous conflicting stories about when he knew (or didn't know) his card was stolen. For example, in one conversation he says he thinks his roomate stole it. Then when he talks to our security officer he says he doesn't have a roomate. He claims he was out of the country when these took place, but yet we see checks written to local businesses written/clearing during this time. Some, but not all of the transactions appear (to us) to be consistent with his normal spending patterns.

Operations wants to deny the claim. Fortunately, they have done a good job of documenting each conversation with the customer. The customer is adament he did not authorize and says he will get a lawyer if he has to. Your thoughts would be appreciated.

What are the results of your investigations into the electronic debits? Are they signature based, PIN based, etc? Were they conducted in person, can you get film? The results of the investigation along with the statements drive the ultimate decision.

BC & DP, thanks for the advice. I'm going to plead ignorance here, but do all ATM/cash dispensers have cameras? Some of the transactions are at convenience stores where they paid at the pump and then withdrew cash from the inside. We are trying to get copies of the signature based transactions.

We end up giving a lot of people the benefit of the doubt (one benefit per person!), but this is such a large amount and management want's to draw the line, if it is defensible. Just what I need before the weekend!

Going back to your initial question -- If a regulator received a complaint from one of your customers about how you handled a Reg. E claim, the regulator would pass it back to you. It's not the regulator's job to judge the right or wrong of the outcome -- only the process. As noted, if it gets that far, this is a matter for the court or arbitrator.

Quote:

---

do all ATM/cash dispensers have cameras?

---

Absolutely not. And in some cases they use tapes and re-use tapes. So ask quickly if you have a request of an ATM owner. In some cases, state laws may impose camera requirements, but that isn't a federal requirement. And even when there is a tape, it isn't always helpful.

And I agree about the final judge. In some cases, examiners reviewing your files may suggest you review some claims they believe were handled improperly. But it is as difficult for them as it is you to make a decision to pay a claim. That is, unless you ignore the facts and/or requirements. My experience in complaint resolution is that they'll again tell you of the complaint, and read your response. If it seems correct, that is it. What did your investigation entail, what did you document, why and what facts lead to your decision.

Thanks Andy, now get some sleep!

Sleep is over rated.