01/07/2008
We continually receive disputes involving minor children (under age 18) who have purchased a product on the internet using their parents debit card number for payment. The parent files a claim for unauthorized transaction. Obviously, they refuse to get a police report as we normally require to continue the investigation. The parent tells us the child made the transaction, but they (the parents) did not authorize it. Can the fact that the parents are responsible for actions of minor children living in their house and using their equipment be our defense for denying the claim?
12/10/2007
A customer's debit card has been stolen and unauthorized ATM withdraws showed up on his or her account. Do we have to refund the foreign ATM fees from the other bank or are we only responsible for the actual cash withdraw amount?
12/03/2007
Our VISA Check Card department is encountering difficulty trying to figure out how to meet both VISA and Reg E requirements. For example, to initiate a charge back for a duplicate charge or wrong amount, VISA requires consumers to make a good faith attempt to resolve the dispute with the merchant prior to filing a charge back, but our Reg E folks tell us we are in violation of Reg E if we tell the customer this. How do other institutions balance the two when they are not in agreement?
10/01/2007
Does a business account have Reg E protection? If not, do we not take the claim and advise the customer they will need to resolve with the company that originated the transaction?
08/27/2007
We are considering offering a debit cards to our corporate accounts, what type of disclosures will be needed?
08/20/2007
Our lending operations department (not credit card) would like to initiate an EFT through our third party vendor to debit our customer's deposit account to exercise our right to offset for amounts owed on our customer's loan. Our deposit account terms and conditions discloses our right to offset any amounts owed to the bank. We know that generally Reg E, Section 205.3 (c)(5) would allow the bank to electronically transfer funds between a customer's accounts without the customer's specific request under certain circumstances and that the official commentary provides that this exception to Reg E includes the right to initiate "electronic debits or credits to consumer accounts for check charges, stop-payment charges, NSF charges, overdraft charges, provisional credits, error adjustments and similar items that are initiated automatically on the occurrence of certain events." In order to exercise our right to offset electronically, the transaction will need to be processed through our third party vendor. Do we have any Reg E or other regulatory concerns in doing so?
08/06/2007
With regard to Reg E, if an item is pending but not posted to the account, when does the clock start for extending provisional credit and working the case? Does an item need to be hard posted in order to dispute?
07/23/2007
Reg E applies to someone who is a "natural person". Does this mean that a non-resident alien who is issued an access device is not able to submit Reg E claims for unauthorized transactions?
07/02/2007
What are the notice requirements when a bank suspends an ATM/debit card for an existing customer due to account abuse? Where can I find a sample of such a notice?
06/11/2007
If a bank offers an existing customer an outdated EFT disclosure (with incorrect POS dollar limitations) upon applying for a new service (debit card) are they in compliance as long as it doesn't adversely affect the customer (the limit is actually higher than disclosed)?