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Reg E - How to Handle Customer Disputes and Inquiries

Tuesday, May 8th, 2012
2:30 pm - 4:30 pm EST

Our topic for the webinar will focus on several simple steps to handle Reg E customer disputes and inquiries. Understanding the rules will help you satisfy the regulators but can also SAVE YOUR FINANCIAL INSTITUTION MONEY by only paying the claims that you are required to reimburse for unauthorized transactions. We will review the steps required to handle disputes and inquiries and the time frames for resolving a claim for an unauthorized transaction. The only way you can be sure that your front line staff is complying with this high-profile consumer protection regulation is by providing effective training and sound procedures.

Covered Topics:

The basic disclosure requirements of Reg E and the definitions that guide the error resolution process.
What questions should you ask a customer about a disputed transaction?
What are five "best practices" for handling a Reg E dispute?
What should be included in an investigation report?
How do you determine if a customer is liable for an unauthorized transaction? You'll learn practical suggestions for conducting an investigation.
Case studies of investigation claims will help you understand the four time periods for investigation; providing provisional credit; the notice process for investigating claims. You will get sample letters; and tips for separating valid claims from those that don't require error resolution.
Suggestions to calculate liability for unauthorized transactions
Helpful Reg E compliance resources and regulatory guidance, including an error resolution flowchart and exam procedures for error resolution.

PREVIEW QUESTION: A customer reported that they lost their card. The customer told the personal banker that they'd written their PIN on the card. There have been several ATM withdrawals that the customer reports weren't done by him. Isn't the customer liable since he wrote his PIN on the back of the card? Our account disclosure says that the customer agrees to keep their card and PIN secure. Can we deny the claim?

ANSWER: The consumer's liability will be determined by whether or not they reported the loss of the card within the prescribed time frames. Unfortunately, the commentary to Reg E 205.6(s) says this: "Consumer negligence. Negligence by the consumer cannot be used as the basis for imposing greater liability than is permissible under Regulation E. Thus, consumer behavior that may constitute negligence under state law, such as writing the PIN on a debit card or on a piece of paper kept with the card, does not affect the consumer's liability for unauthorized transfers."

Presenter - Susan Costonis

Susan Costonis is a compliance consultant and trainer. She frequently provides consulting services to financial institutions regarding fair lending and other compliance management issues. Her 34 year career in banking and training began with 20 years at First National Bank, an affiliate of Wells Fargo Bank, in Fort Collins, CO. Susan has been a bank compliance consultant or compliance officer in Louisiana since 1998. During her career, Susan has successfully managed compliance programs and exams for institutions supervised by the OCC, FDIC, and Federal Reserve. She is a Certified Regulatory Compliance Manager and completed the ABA Graduate Compliance School and the Graduate Banking School of the University of Colorado. Susan regularly presents seminars to financial associations.

Who Should Attend?
Customer Service Reps, New Account Reps, Teller Supervisors, Deposit Operations staff, Security and Compliance Officers will find this session very beneficial. NOTE: This webinar will NOT address Visa or MasterCard zero liability rules.