Reg E - T/F

Question 1

Reg E classifies both failure to include a transfer on the periodic statement and a consumer request for more information as “errors”.

Answer 1

True
Reg E, Sec. 1005.11 (a) (1)

Question 2

A DFI must respond to a notice of an error by either resolving it within 10 business days or recrediting the customer account during a 45-day investigation.

Answer 2

True
Reg E , Sec. 1005.11 (c) (1) and (2)

Question 3

Reg E allows exactly twice as long to resolve POS errors or EFTs that are not initiated within a state as pre-authorized EFT errors.

Answer 3

True
Reg E, 1005.11 (c) (3) (ii) (A) and (B)

Question 4

DFI must provisionally re-credit a customer account even if it required written confirmation following oral notice of an error and the customer did not provide it.

Answer 4

False
Reg E, Sec. 1005.11 (c) (2) (i) (A)
Not required to give provisional credit unless they want to take the 45 day investigation option and NOT required of written request was clearly asked for and WAS NOT provided (still HAVE to investigate)

Question 5

DFIs have two business days to correct confirmed errors.

Answer 5

False
Reg E, 1005.11 (c)(1) (must correct within 1 business day)

Question 6

DFI may not notify consumers of corrected errors via the periodic statement.

Answer 6

False
(may be notified via periodic statement) Reg E, 1005.11(c) 5 Official Interpretation

Question 7

If loss/theft of access device is not reported within two business days, the consumer’s liability will exceed $50 if financial institution establishes that unauthorized transactions would not have occurred if loss/theft had been appropriately reported.

Answer 7

True
Reg E, Sec. 1005.6 (b) (2)
Different rules for reporting involving losses that do not involve lost card. (60 days after STATEMENT, no liability)

Question 8

DFI has three business days after completing its investigation to report the results to the consumer.

Answer 8

True
Reg E, Sec. 1005.11 (c) (1)
Investigate 10 days (may require written notice within 10 days)
Report within 3
Correct within 1
Provide notice regarding any provisional credits and docs if no error found.
Provisional credit NOT required, but if they want to do 45 investigation they do

Question 9

Reg E requirements for notices of varying amount and stop payment for recurring payments are the same as Nacha requirements.

Answer 9

True
Reg E, Sec. 1005.10 (c) (1) and (d) (Note: Nacha Rules covering non-consumer stop payments do not match.)

Question 10

Government-initiated transfers and passbook accounts are exempt from Reg E disclosure requirements.

Answer 10

False
If EFT transactions post, government is not exempt and still must provide all notices, receipts and statements (except under $15).
Reg E, Sec. 1005.15 (a) and (c) and Reg E, Sec. 1005.9 (c) (1)(i)

Question 11

If a financial institution is small (asset size of $ 100 million or less), debits and credits it receives are exempt from Reg E disclosure requirements.

Answer 11

True
Reg E, Sec. 1005.3 (c) (7)
Smaller institutions still required by Reg E to comply with Reg for OTHER services offered (like issuance of debit card, terminal receipts, periodic statements) only exempt from the DISCLOSURE requirements

Question 12

Reg E covers all ACH commercial transactions.

Answer 12

False
Reg E, Sec. 1005.3 (a)
Covers any EFT that authorizes an F. I. to debit or credit a consumers account (commercial credits covered by UCC4A)