Simple Guide to Reg E for Bank Employees

What is Reg E?

Regulation E (Reg E) is a federal regulation that sets rules for electronic funds transfers (EFTs). This includes ATM transactions, debit card transactions, and electronic payments.

What is a Reg E dispute?

A Reg E dispute occurs when a customer notices an error or unauthorized transaction on their account. This could be anything from a fraudulent charge to a transaction that was processed incorrectly.

How should a Reg E dispute be reported?

Customers should report Reg E disputes to their bank or financial institution as soon as possible. This can usually be done by phone, email, or through the bank's online portal. It is important to provide as much detail as possible about the disputed transaction.

What is the bank or credit union's responsibility?

Under Regulation E, banks are required to investigate and resolve disputes within a certain timeframe. The bank must acknowledge the dispute within 10 business days and provide a resolution within 45 days (or 90 days for transactions involving foreign accounts). If the bank determines that the customer's claim is valid, they must issue a refund.

How can Reg E disputes be managed?

Banks can streamline the process of managing Reg E disputes by automating the process. This can involve using software that can track disputes, automate communication with customers, and provide reports for compliance purposes. Learn more about automating Reg E Disputes. 

What are some tips for managing Reg E disputes?

• Make sure your bank has a clear process in place for handling Reg E disputes.
• Train your staff on how to handle Reg E disputes, including how to document and investigate claims.
• Consider using automation tools to streamline the process and reduce errors.
• Communicate with customers regularly and keep them informed about the status of their dispute.
• Keep detailed records and reports for compliance purposes.