Answer:
Reg E doesn't require that authorization be proven "beyond a reasonable doubt." It only requires that the bank determine on a reasonable basis that its customer authorized the disputed transaction. It is up to the bank to prove to its satisfaction that the authorization was given, not up to the customer to prove that it was not given. When a bank decides to its satisfaction that a customer is not being truthful, it has the right to close the investigation and deny the claim. The customer retains the right to provisional credit (assuming the claim was made in writing or otherwise satisfied the requirements to trigger the provisional credit requirement) if the bank doesn't decide and close the investigation by the end of the 10 (or 20) day period provided in the regulation.
First published on BankersOnline.com 8/13/07
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