Customer Closed Acct. Before Disputed DC Entry

The customer does not forfeit her protections under Reg E or VISA/MasterCard Zero Liability becuase the account is closed. The bank should still follow its normal error resolution procedures, although provisional credit may have to come in the form of a cashier's check instead of a credit to the account. The customer should also be aware that she would still be responsible for returning the money in the event your investigation concluded that the charge was valid.

First published on BankersOnline.com 8/29/11