Regulation E Quiz: Are You Up-to-date On EFT Rules?

No, this is not a valid fraud claim. The cardholder willingly gave their card to a friend, indicating that they authorized the friend to use it for the purpose of getting gas. The fact that the friend is not paying them back does not constitute fraud, as there was no unauthorized use of the card.

This is an example of non-receipt of goods or services. The cardholder ordered a cooking kit and it was supposed to be delivered within 7 days. However, 15 days have passed and they still haven't received the kit. This indicates that the goods or services they paid for have not been delivered to them.

Reg E, also known as the Electronic Fund Transfer Act, is a federal law designed to protect consumers in electronic transactions. It establishes the rights and liabilities of consumers and financial institutions when it comes to electronic fund transfers, such as ATM transactions, debit card purchases, and direct deposits. The purpose of Reg E is to ensure that consumers are provided with clear and accurate information about their electronic transactions, as well as to establish procedures for resolving errors and unauthorized transactions. By focusing on the consumer, Reg E aims to safeguard their interests and promote fair and transparent electronic transactions.

This is an example of Duplicate Processing. It occurs when the same transaction is posted to the account multiple times, resulting in duplicate charges. In this case, the cardholder noticed that the purchase made at Target was posted twice for the same amount on the same day. This could be due to an error in the payment processing system or a technical glitch. The cardholder should contact their bank or credit card company to report the duplicate charges and request a refund.

An unauthorized electronic fund transfer refers to a transaction that has taken place without the customer's consent or the consent of anyone authorized by the customer. Therefore, the statement "An unauthorized electronic fund transfer is a transaction that was not authorized by the customer or anyone authorized by the customer" is true.

Debit card transactions are counted as electronic fund transfers because when a debit card is used, funds are electronically transferred from the cardholder's bank account to the merchant's account. This transfer of funds is done electronically through the banking system, making it a form of electronic fund transfer. Therefore, the statement "Debit Card transactions are counted as Electronic Fund transfers" is true.

A customer can reassert a claim that an error has occurred because they may have new evidence or information to support their claim. Additionally, they may have initially been denied or overlooked, and reasserting their claim gives them another opportunity for resolution.

If the bank determines no error has occurred, they should notify the customer in writing. This is important to keep the customer informed about the investigation and the bank's findings. Written communication provides a clear record of the bank's decision and ensures transparency in the process. It also allows the customer to have a physical document for their records and reference if needed in the future.

The correct answer is to advise the customer that since they did not notify the bank within 60 days of the unauthorized transaction, the bank is only responsible for the first 3 months of charges. This is because according to most bank policies and regulations, customers are required to report any unauthorized transactions within a certain timeframe, typically 60 days. Since the cardholder notified the bank in December 2013 about a recurring charge that started in January 2013, they did not meet the notification requirement, and therefore the bank is only responsible for the first 3 months of charges.

After receiving written notice, the bank has 10 days to issue provisional credit. This means that within 10 days of receiving the notice, the bank must provide a temporary credit to the account holder while they investigate the issue further. This allows the account holder to have access to the funds during the investigation process.

The correct answer is counterfeit. Counterfeit fraud occurs when a fraudulent card is created using stolen card information. In this case, the cardholder's debit card number was used to make a transaction in Florida while they were in Columbus, suggesting that someone created a counterfeit card using their information.

The bank has 10 days to determine if an error has occurred without issuing provisional credit. This means that within this time frame, the bank must investigate and verify the error before taking any action to provide temporary credit to the customer. This allows the bank sufficient time to conduct a thorough investigation and ensure that the error is genuine before making any financial adjustments.

The correct answer is to ask for cancellation information since the charge has been recurring and the others are not in dispute. This is because the cardholder is only disputing the last charge as fraud, while the previous charges have not been disputed. Therefore, it is important to gather cancellation information to understand why the cardholder is claiming the last charge as unauthorized, while the previous charges were authorized. This information will help in determining the appropriate action to take regarding the disputed charge.

The correct answer is "All of the Above" because all three options mentioned - Debit Card, PIN, and Checks - are different types of access devices. A debit card is a physical card that allows access to funds in a bank account, a PIN (Personal Identification Number) is a numeric code used to authenticate and access various accounts, and checks are written documents that provide access to funds in a bank account when presented for payment. Therefore, all three options mentioned are valid examples of access devices.

The correct answer is to issue provisional credit and submit chargebacks for all transactions. This is because the cardholder contacted the bank in December 2013 to report unauthorized transactions that occurred since November 2013. By issuing provisional credit, the bank can provide temporary reimbursement to the cardholder while the investigation is ongoing. Additionally, submitting chargebacks allows the bank to dispute the transactions with the merchant and potentially recover the funds.

If the bank is unable to resolve the issue within 10 business days, they can extend the time frame by issuing provisional credit to the customer. This means that the bank will temporarily credit the customer's account while they continue to investigate and resolve the issue. This ensures that the customer is not left without funds during the investigation process and provides them with some financial relief.

This scenario is an example of "Paid by Other Means." The cardholder attempted to make a purchase with their debit card, but it did not go through. As a result, they wrote a check for the amount of the transaction, which was then posted to their account. This indicates that the payment was made using an alternative method, in this case, a check, rather than the original intended method of using the debit card.

This statement is false because not every fraud claim is considered valid. Fraud claims need to be investigated and proven before they can be considered valid. There are cases where fraud claims are found to be false or unsubstantiated after investigation. Therefore, it is incorrect to assume that every fraud claim is automatically considered valid.

This is not a valid dispute because the cardholder claims that the last transaction at Kroger was not authorized, but there are two transactions that occurred after that which are not in dispute. This suggests that the cardholder continued to use the card at the same Kroger after the alleged unauthorized transaction, indicating that they may have authorized it themselves.

Under Regulation E, which implements the Electronic Fund Transfer Act (EFTA), consumers are protected in electronic fund transfer transactions. One of the key protections is the requirement for banks to investigate and resolve errors in a timely manner. According to Regulation E, a customer has 60 days from the date of the statement on which the error first appears to report the error to the bank. This 60-day period allows consumers enough time to review their statements and identify any unauthorized transactions or errors.

If provisional credit has been issued under Regulation E, the bank typically has 45 days to complete its investigation of the reported error. However, this period extends to 90 days for transactions involving new accounts (opened within the last 30 days), point-of-sale transactions, and foreign-initiated transactions.

The correct answer includes valid fraud denial reasons such as normal shopping pattern, customer frequents the merchant location, card not reported lost/stolen, and customer's shopping footprint/vicinity. These reasons suggest that the customer's behavior and shopping habits are consistent and do not raise any suspicion of fraudulent activity. Additionally, the fact that the card is not reported lost or stolen further supports the legitimacy of the transactions.