Banker's Compliance Consulting Blog

Online Bankers Training - Regulation E Unauthorized Transactions

Written by David Dickinson | Mar 15, 2021 2:12:43 PM

Regulation E error resolution rules are tricky!  This is also an area that has experienced recent examiner scrutiny.  Here’s a question that has come up a couple of times in the last month or so:

Question:  When a consumer has received merchandise or a service they authorized via a VISA transaction, but they’re not happy with it, is the bank required to investigate and follow Regulation E?

Answer:  No. The bank has no responsibility under Regulation E because the transaction was authorized by the consumer.  Regulation E does not have a “satisfaction” provision like Truth in Lending (Regulation Z).  Keep in mind; however, since this is a VISA transaction, you must also follow any requirements VISA might impose.

Find all your Deposit Operations Tools HERE!

Published
2021/03/15