When it comes to resolving errors covered under Regulation E are you going “over the top”? Maybe your written procedures are in tune with the regulation but are your actual practices? Banks cannot impose on a consumer any requirement or liability greater than what is allowed under Regulation E. However, we often see and hear of many banks saying one thing (i.e. disclosures) and then doing another (i.e. practices).
We encourage you to review both your written procedures and actual practices to ensure you’re not going over the top. Why? It’s simple, this has become a hot button issue and if you’re out of line, you will eventually pay. Recently two banks, one in Indiana and one in Kentucky, were ordered to pay civil money penalties to the tune of $70,000 and $7,500, respectively. They were also cited under both Regulation E and Section 5 of the Federal Trade Commission Act (Unfair and Deceptive Acts or Practices) for imposing requirements and/or liability greater than allowed.