Reducing Error Resolution Time Frame

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Question:

We have been told that some banks are reducing the number of days that a customer can report an error concerning an EFT from 60 days to 30 days. Is this permissible, or is it a violation of Reg E?

Answer:

It's possible to shrink the reporting "window" for transactions that are subject to the Uniform Commercial Code (UCC). That includes checks, but not EFTs. The 60-day notice period for EFTs is written into the law and is not subject to modification to the detriment of the consumer.

First published on BankersOnline.com 3/12/07