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Error Notification Responsibility

Question: 
If the bank finds the error that occurred, not the customer, is the bank required to send notification of the error or it is just a courtesy?
Answer: 

Answer by Andy Zavoina:

You should notify the customer so they will understand the effects on their account, regardless of the reason.

Reg. DD requires that if a statement is mailed, it will tie back to the fees and terms agreed upon. If you have varied from that, defining the correction will decrease calls for customer service, promote confidence and help you comply with the Reg.

That said, from a regulatory perspective there is less of a requirement and more of a courtesy.

Answer: 

Answer by John Burnett:

The Commentary to Regulation E Section 205.11 makes it clear that the error resolution requirements of that section do not apply when a bank discovers an error and corrects it on its own initiative.

First published on BankersOnline.com 3/3/03

First published on 03/03/2003

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