Regulation E: Error Resolution Requirements

• Overview

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.

Authors

Paul A. Carrubba, Adams and Reese LLP Scott Jones, Adams and Reese LLP

Agenda

Overview

• Regulation E - a Consumer Protection Law

• Liability of Consumer

• Error Resolution Procedures

• Case Law

Liability of Consumer

• Conditions and Limitation of Liability

• What Is an EFT?

• What Is Not an EFT?

Error Resolution Procedures

• What Is an Error?

• Financial Institution's Obligation

• Consumer's Obligation

• Financial Institution's Liability and Timeframes

• Treble Damages

Case Law

Conclusion

• Train Employees

• Act on Customer Notice of Error

• Act Timely

• Document

Questions