Reg E Valid Reasons for Disputing an EFT

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Question:

Reg E question-My customer is disputing an EFT to an auto mechanic who damaged a part on his truck while performing another repair. Is this a valid reason to submit a dispute? Customer states the mechanic refused to repair the damaged part.

Answer:

The customer has a claim against the mechanic, but it's not a claim that's recognized under Regulation E. There's not a question as to the authorization, amount, accuracy, computation or any of the other facets of the seven-part definition of "error" under secdtion 1005.11(a)(1).

Assuming that a debit card was used to initiate the transaction, there's a possibility that Visa or Mastercard rules provide a vehicle for the customer's dispute to be handled. Check the operational guides of your card network for further information.