Four Inconsistencies in Claims Management That Lead to Regulation E Bank Losses
Requirements for Regulation E are complex and require a careful analysis of claims using the correct rules to minimize bank losses. In addition, each claim requires a tedious step-by-step resolution process that can vary depending upon the circumstances, and even a small misunderstanding of the rules can lead to confusion and result in higher bank losses and an increase in regulatory deficiencies.
“From taking up-to an hour to do manual paperwork, I finished everything in a minute or two and sent it to the customer. Plus with everything being online, we now have more success in getting customers to sign online, in a timely manner”
Jessica Quick, Fraud Department, Security First Bank
To help avoid these concerns, here are four common errors made today by banks, some of which are simply due to inconsistencies in claim management.
1. Using an incorrect “reported date” when calculating deadlines.
2. Incorrect claim denials.
3. Incorrect account adjustments.
4. Dispute not processed while waiting for a customer signature.
These errors can be reduced by having compliance officers manually review all the claims; however, this is time consuming and expensive.
How FINBOA helps
FINBOA’s end-to-end process automation is optimized for Reg E. Eliminate the need to use multiple systems requiring manual steps that cause regulatory deficiencies. Banks using our automation tools, report they can do in minutes what used to take them hours making compliance easy.
With integrated Digital Signatures, customers get a completely digital experience on the device of their choice. FINBOA acts as a central repository for all claims and claim documents so financial institutions can end the paper chase. Auditors can quickly verify disputes were processed correctly reducing the time to prepare for an audit by 80%.