Regulation E: Provisional Credit

When a customer notifies you of an error, you are required to start an investigation. Under Regulation E, if that investigation will take longer than 10 business days, you must provide the consumer provisional credit. In other words, you must make them whole, as if the error never happened, while you conduct your investigation. Depending on the results of your investigation the consumer may ultimately end up keeping the money or you may have to take it back.

Jerod explains more in the video.

Video Highlights:

• The general rule is that provisional credit must be provided within 10 business days, or 5 business days for Visa transactions.
• If a customer does not put their dispute in writing, you do not have to provide provisional credit, but you must still investigate.
• Provisional credit includes the amount of the alleged error and any lost interest, where applicable.

Published
2023/03/10