Reg E Problems

Answered by:

Question:

We have a customer that has filed several disputes along with a police report stating his card was stolen. After we provided him with provisional credit, his story changed with both us and the police. We know the disputes will be denied. Does the bank have any right to hold the provisional credit because of him falsifying statements?

Answer:

You need to just complete your investigation and make your decision, denying the claim. Then no credit is necessary. Otherwise, you really don't have the ability, under the reg, to delay the investigation and withhold the credit.

First published on BankersOnline.com 11/05/07