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Debit Card/ACH Dispute-Require Resolve Attempt?

Question: 
A customer comes into a bank to report a disputed debit card or ACH transaction. Can we require our customer to try to work with the merchant/company before we have them sign the disputed transaction forms? Our network provider has a section on the form asking if the customer has attempted in good faith to resolve this dispute with the merchant, and if marked yes, they ask for details of the attempt to resolve. Also, at meetings they have recommended the customer try to resolve it with the merchant before filing through them.
Answer: 

You are required to take care of your customer. You can ask if they have tried to work it out with the merchant, but you can't require it. The purpose of this is that you and the merchant both don't debit the account.

Section 1005.6 and Section 1005.11 both indicate you have received an error when the consumer informs you. These sections also require you to investigate promptly.

First published on BankersOnline.com 6/20/11; Regulation links updated 12/31/12

First published on 12/31/2012

Filed under: 
Compliance
Filed under compliance as: 
ACH
IT
Merchant

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