Examiner Insights into Regulation E
In December, the Federal Reserve held an Outlook Live Webinar, “Regulation E – Error Resolution Examiner Insights”, focusing not only on the procedures in §1005.11 for resolving errors but also the circumstances under which a consumer can have liability for an unauthorized transaction, found in §1005.6.
As you likely know, Regulation E doesn’t do financial institutions any favors. It truly focuses on consumer protection. This means, of course, that financial institutions will usually lose. That mere fact may sometimes tempt institutions into finding creative ways to “win”, even when the options are few. As the Federal Reserve reiterated, under The Electronic Funds Transfer Act, the burden of proof is upon the financial institution to show that the electronic fund transaction was authorized…
The Federal Reserve discussed several areas related to error resolution under Regulation E where they are seeing complaints and/or are citing violations. These include:
- Failure to initiate an investigation;
- Charging fees to report an error and/or investigate an error;
- Not providing provisional credit in a timely manner and/or not including interest, when applicable;
- Denying claims without adequate investigation; and,
- Failures in the notification process when a claim is either honored or denied.
Whether you are a Federal Reserve Bank or not, we encourage you to take note. You can learn a lot from other banks’ mistakes. Be sure to check out the February edition of our magazine, Banking on BCC, for more insights and information from this Outlook Live webinar.
If you’re looking for training, we have a webinar available NOW, On-Demand, “Regulation E: Errors and Disputes”. Or, we will be hosting this webinar again LIVE on April 21, 2020. Stay tuned to our store for registration information. Regulation E is one of those areas where you’re likely to pick up on something new each time you get to attend training!
Published
2020/02/25
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David Dickinson
David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.
He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.
David and his wife Karen have three adult children, four grandchildren (none of whom live at home!) and two cats (of which Dave is allergic … the cats, not the children!). They recently moved to an acreage outside of Lincoln, Nebraska where he gets to play with his tractor. When possible David can be found fishing, making sawdust in his shop, or playing the guitar and piano. He also enjoys leading worship at his church.