Answer:
Answer by John:The regulation mandates that the provisional credit include any applicable interest. The requirement for making the customer whole as to fees imposed by the bank is found only in the Commentary -- specifically Comment 6 to section 205.11(c) -- in connection with final settling up of the claim when your investigation is completed. I believe you can technically justify postponing the crediting of fees until that time (unless you forget it then). However, some banks prefer to include the fees as part of the provisional credit so that when the final notice is given, it can simply say "your provisional credit has been made final," if that accurately reflects the facts. I don't believe that the regulation requires that fees be included in the provisional credit amount.
Answer:
Answer by Andy:I can't dispute that John's cite is correct and the refund of fees isn't technically required until final crediting is due. But there is also a more conservative opinion which would say that the overdraft fees that resulted from unauthorized transfers are an extension of the withdrawal(s) and should be included with any provisional credit. These fees can easily be hundreds of dollars and could, in theory, be greater than the actual withdrawn amount. Making the consumer truly whole will not invite any potential criticism from your regulator or your customer, and may go a long way toward appeasing the customer you want to retain.
First published on BankersOnline.com 10/08/07
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