In the world of financial institutions, error resolution is a way of formally reporting when a problem arises. Your bank in Virginia has to follow a specific error resolution protocol when it responds to a customer-reported error, and understanding this process can help you know what to expect from it.
The bank’s duty and the customer’s duty
The bank only has a certain amount of time to look into the cause of the issue. It might also be necessary for them to pay back any funds that were affected to the customer before they’re finished investigating. The bank may be required to finish its investigation in as little as 10 days, but in some cases that deadline is stretched to as long as 45 days.
On the other end, it’s the customer’s duty to let the bank know that there has been a problem in a timely fashion. You also have to give your bank any relevant information they might need to support your claim and clue the bank in on how the investigation should go.
Regulation E is what makes it mandatory for banks and other financial institutions to conduct investigations when these types of business disputes arise. This regulation also requires the institution to re-credit any funds that were erroneously debited.
Regulation E is for error resolution
Common examples of error resolution in which Regulation E comes into play include:
- Incorrect electronic funds transfers
- Unauthorized withdrawals
- Inaccurate ATM withdrawals
- Incomplete or inaccurate account statements
- Bookkeeping or calculation mistakes
It’s important for customers to let the bank know of the issue because it can have a significant impact on their liability. As long as they have notified the bank, the account liability of the consumer generally has a $50 limit. But if they didn’t, that liability can jump up as high as $500.