Compliance Q&A: Reg E Error Investigations

Q:  On Regulation E error investigations, does a customer have to be given provisional credit if the investigation is conducted within the first day of the dispute and proven the customer is liable for the purchases?

A:  You’re required to provide provisional credit if an investigation under Regulation E 1005.11 extends beyond ten days.  So, if you’re resolving your investigation and issuing findings before that deadline then there is no need for provisional credit under the Regulation.

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