Waiting on MC or V to finish Reg E claim

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Question:

Can we as the bank deny a claim and wait for a resolution from Mastercard/Visa that exceeds the 90 day time frame due to it being in arbitration and then credit the consumer at a later date if we received the credit after the 90 day reg E time frame?

Answer:

No! Reg E provides definitive dates. The bank may not exceed those dates without violating Reg E and subjecting itself to penalties. It is unfortunate that MC/V rules allow merchants longer to respond to the bank than the bank has to respond to the consumer, but the law prevails as to consumer rights and the MC/V rules prevail for the merchant.