FREE Deposit Compliance Q & A Forum

When it comes to unauthorized electronic funds transfers, Regulation E is all about protecting the consumer and limiting their liability in certain instances. Regulation E is not concerned with protecting a financial institution against a loss. That can be a hard pill for some institutions to wrap their minds around. It’s not about you! So, what if a customer is or appears to be negligent in connection with a reported error? Can you increase their liability?

Dave explains more in the video.

Video Highlights:

• A contract cannot supersede laws and/or regulations.
• Contracts cannot violate a customer’s rights; therefore, negligence is not a valid basis for imposing liability under Regulation E.
• The OCC addresses this fact in their Deposit Services Handbook and cautions institutions from doing this.

Published
2023/03/28