08/17/2009
I understand that the bank is liable for an unauthorized transactions if the customer loses his debit card, even if he wrote the PIN on the back of it. However, we have a situation in which the customer gave his card and PIN to a relative. Now he is claiming some of the transactions were unauthorized. What is our liability?
07/26/2009
A bank's customer has signed up for the bank's online banking program. The customer also signs up for bill pay using the bank's bill pay application. The customer’s PC has been hacked between the customer's PC and the bank's computer system. The bad guy has control over the customer's PC and can now see ID, passwords, everything. The bad guy transfers money out of the customer's account to a valid DDA account in Florida. The customer in the Florida bank was hired by the bad guy to keep $500.00 and wire the rest of the money out of the country. The customer in my bank sees his DDA statement and sees the bad transaction(s). He comes to the bank and dispute the items. The bank says sorry, the loss is yours; you should protect your PC better. Who has the loss, the customer with online banking or the bank? Is the customer protected because of Reg. E? Reg E was not written for online banking and bill pay, but maybe it extends coverage to now include online banking? Do you know of any legal cases in the US that might help address this as well?
07/13/2009
If an authorized signer on an account already has an ATM card, can we automatically issue them a debit card? Can an authorized signer come and order a debit card, or would the owner of the account have to come order it for the authorized signer?
06/29/2009
Our customer provided his debit card number to a debt collection agency, which is a law firm. At least two payments were successfully processed via the debit card and withdrawn from his account. Today, a pre-authorization from the same company has hit the account. The customer called us to state that he contacted the company this morning and told them not to take the payment, and the payment was processed despite his request. I have my doubts about the sequence of events, i.e. whether he contacted the company prior to the posting of the preauthorization. My phone calls to the company to verify the transactions have not been returned. In these circumstances, is the bank required to give credit based on Reg E?
06/08/2009
What are the differences between EFT and Wire Transfers? What file formats are used by each?
05/25/2009
I know this is a basic question but can someone explain stop payments that are subject to Reg E?
05/18/2009
Does the 10-business day timeframe for Reg E claims begin the day we receive the claim or at midnight of the day we receive the claim?
02/23/2009
A customer is claiming unauthorized debits to her account. She said she just realized this, but she claims the first occurance was in May. The $200 ACH debits occured every two weeks for several months. The debits were payments on a bill she owes. She said she authorized $50 a month. I realized I only have to reimburse for the debits occuring 60 days after the statement cycle in which the error occured. So far, I am not having much luck with the third party on getting proof our customer authorized the $200. It is too late to return the ACH's for unathorized. Our customer has benifited from these ACH debits in that her outstanding debt to this company has been reduced. Can we deny that claim based on the fact the she has benefited?
02/16/2009
While reviewing a suspect fraud journal I noticed suspicious activity on one of our customer's debit cards. Only after contacting the customer did we learn the card had been left in a restaurant ten days earlier. The customer knew they had left the card, but failed to report it as lost or stolen. Are we responsible for charges incurred ten days after the customer was aware they had lost the card?
02/16/2009
A customer is claiming unauthorized debits to her account. She said she just realized this, but she claims the first occurance was in May. The $200 ACH debits occured every two weeks for several months. The debits were payments on a bill she owes. She said she authorized $50 a month. I realize I only have to reimburse for the debits occuring 60 days after the statement cycle in which the error occured. So far, I am not having much luck with the third party on getting proof our customer authorized the $200. It is too late to return the ACH entries as unauthorized. Our customer has benefited from these ACH debits in that her outstanding debt to this company has been reduced. Can we deny that claim based on the fact that she has benefited?