Reg E Compliance
Since 1978, when Congress passed the Electronic Fund Transfers Act (EFTA)—better known as Regulation E (Reg E)—financial institutions have been responsible for properly investigating consumer claims of electronic fund transfer (EFT) errors. Those investigations must follow very specific error resolution procedures.
At the time Reg E was enacted, paper-based payments far outnumbered electronic fund transfer (EFT) payments. Today, the exact opposite is true. The rise in EFTs has been accompanied by a parallel rise in EFT error claims, making Reg E claims that much more common and difficult for financial institutions to resolve.
How to Remain Reg E Compliant
Complying with EFT regulations requires financial institutions and their employees to recognize the following milestones and proceed accordingly with each Reg E dispute:
- When the official notice of a claim has occurred so that it can be investigated and resolved within the Reg E specified time period
- When to issue provisional credit to the customer during an investigation
- When to debit the customer’s account if the investigation shows that no error occurred
- When and how the customer should be notified throughout the investigation
Simplify Reg E Compliance at Your Institution
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