We received an EFT dispute where the customer lost the card but the PIN was written on the back of the card. Can we refuse this claim as the customer didn't safeguard the PIN?
No, unfortunately a customer’s negligence doesn’t protect the bank from liability. The commentary to Reg E provides clarification:
CONSUMER NEGLIGENCE. Negligence by the consumer cannot be used as the basis for imposing greater liability than is permissible under Regulation E. Thus, consumer behavior that may constitute negligence under state law, such as writing the PIN on a debit card or on a piece of paper kept with the card, does not affect the consumer's liability for unauthorized transfers. (However, refer to comment 2(m)-2 regarding termination of the authority of given by the consumer to another person.)
OFFICIAL INTERPRETATION TO 6(b)
Can we issue the Closing Disclosure with the lower loan amount without re-issuing a Loan Estimate? No zero tolerance fees are affected and the APR will not be out of tolerance.
You can--as long as all of your 0% and 10% fees are within tolerance, you can simply update the correct amounts on the Closing Disclosure and be in compliance.
To ensure compliance with the Military Lending Act, we will be checking both the military website and including the verification on the credit report. In regards to the credit report, do we need all three bureaus to verify or is just one bureau acceptable? What is best practice?
Just one bureau is acceptable and will keep the bank under the safe harbor. As the regulation states, "To determine whether a consumer is a covered borrower, a creditor may verify the status of a consumer by using a statement, code, or similar indicator describing that status, if any, contained in a consumer report obtained from a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis[.]" 32 CFR §232.5(b)(2)(ii).
As a best practice, we recommend sticking with the military website unless there are technical difficulties...then, in that case, using one of the credit bureaus as a backup.
Is it ok to advertise "free checking" if we charge a paper statement fee if you do not enroll in E-statements?
It’s not a best practice, and could be deemed UDAAP, because if the customer DOESN’T sign up for E-statements – the bank knows the customers are going to be charged a monthly fee for the paper statements which is a fee imposed on a regular basis.
Commentary to 12 cfr 1030.8
"3. Fees affecting “free” accounts. For purposes of determining whether an account can be advertised as “free” or “no cost,” maintenance and activity fees include:
ii. Transaction and service fees that consumers reasonably expect to be imposed on a regular basis."
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