Regulation E’s error resolution requirements are typically a hot bed for finding violations. Thus, it came as no surprise that the Federal Reserve’s Consumer Compliance Outlook (Fourth Issue 2023), issued back in January, included some commonly cited Regulation E violations. A few of these included:
- Not investigating promptly §1005.11(c)
This typically occurred because staff didn’t recognize a claim; were unsure how to get an investigation started; or did not correctly identify all the disputed transactions.
- Not giving provisional credit §1005.11(c)(2); and
In instances where the error could not be resolved within 10 days, financial institutions either failed to give provisional credit or they gave provisional credit but did not give consumers full access to those funds.
- Not Providing Proper Notice if No or Different Error Occurred §1005.11(d)
Institutions did not explain the results of their investigation and/or did not alert consumers of their right to request the documents relied upon.
Published
2024/07/15
