Bank operations professionals can make mistakes in the Regulation E (Reg E) process due to several factors, including complex procedural requirements, high volumes of daily transactions, insufficient training, or unclear internal guidelines.
Errors in handling these claims—such as failing to meet deadlines, improperly denying claims, or misclassifying transactions—can expose the financial institution to significant risks. These risks include financial penalties, regulatory scrutiny, and potential lawsuits, as well as damage to the institution’s reputation and loss of customer trust. Inconsistent or incorrect application of Reg E can lead to compliance violations and increased operational costs from correcting errors or responding to customer complaints. Check the infographic below to see if your financial institution could be making any of these common mistakes.
