Regulation E: Error Resolution Requirements
1 hour 30 minutes
Ensure your error resolution process satisfies regulatory requirements.
Regulation E is a consumer protection regulation implemented by the CFPB to enforce the Electronic Funds Transfer Act. The law and regulation basically makes the financial institution liable to the consumer for any unauthorized EFT regardless of the consumer’s negligence. The financial institution is required to follow all of the provisions of the law and the regulation, including the error resolutions procedures, and failure to do so could result in the loss the amount of the unauthorized EFT but also treble damages.
This topic will help you identify unauthorized EFTs, understand the requirements of and how to comply with the error resolution procedures, how to avoid treble damages, and substantially reduce the potential enforcement actions by a regulatory agency for failure to comply with the EFT Act and Regulation E.
• You will be able to define an electronic fund transfer and an error under error resolution procedure.
• You will be able to describe error resolution procedures requirements.
• You will be able to explain what a financial institution must due when a customer notifies a financial institution of an error and when the financial institution must do it.
• You will be able to identify the financial institution’s liability for failure to comply with the error resolution procedures.