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32.CCS
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1992-12-25
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CORRECTING DEBIT CARD BILLING ERRORS
The procedure for filing a billing error dispute on a debit
card account is somewhat complicated. Unlike credit cards,
the consumer may only dispute the following items:
An unauthorized electronic funds transfer or
withdrawal.
An incorrect sum transferred to or from a
consumer's account.
The omission of an electronic transfer from
a consumer's periodic account statement that
affects the consumer's account.
A mathematical error on the periodic
statement.
The consumer's receipt of an incorrect sum
of money from an Automatic Teller Machine.
A consumer's request for verification of an
item on a monthly or periodic account
statement.
As one can see, these areas are fairly concise and leave
little room for interpretation. However, in each billing
dispute, the burden of proof is on the bank card issuer, not
the consumer. They must prove that they are right and that
you are wrong.
Federal law sets time limits in which a consumer must file a
billing error complaint. First we'll explain the time limits
set for a complaint involving "pre-approved electronic
transfer," which is a recurring transfer of money from a
consumer's account on a fixed date.
The consumer has 60 days after such transfer has been made
to file a billing error complaint. Since the bank is
required to tell you as soon as the transfer occurs, your
time frame is roughly 60 days. The 60-day clock starts
running when the bank sends the notice, not when it is
received by the consumer.
In general, notwithstanding pre-approved electronic
transfers, your bank must provide you with a periodic
statement for each billing cycle, or, monthly, whichever
period is shorter. But, if a debit card account becomes
inactive, that is, no transfers occur that affect the
account, a periodic statement may be sent every three
months. In either case, you have 60 days from the mailing
date of your statement to file an account error complaint.
A complaint about an account error may be filed either
verbally or in writing. As always, we recommend that any
complaint be filed in writing and be sent certified mail,
return receipt requested. In the complaint, the consumer
should include their name and account number.
Also, the consumer should state that they believe that an
error has occurred, the amount of the suspected error, and
the reason they believe that an error has occurred. The
consumer should include photocopies of any documents needed
to support their claim.
If the consumer chooses to complain verbally, the bank may
require written confirmation of the complaint. Here, after
receiving such request, the consumer has 10 days in which to
provide a written confirmation.
After the financial institution receives a complaint, they
have 10 business days in which to investigate and answer the
consumer. If an error is found, the financial institution
has one business day to correct the error. If the error is
in the consumer's favor, the financial institution must
credit the amount in error plus interest.
At the financial institution's discretion, they may choose
to "conditionally credit" the disputed amount, plus any
interest, to a consumer's account while investigating a
consumer's complaint. Here, the consumer would have full use
of the account, as well as any money in the account, pending
the outcome of the financial institution's investigation.
The financial institution has 45 days in which to complete
such an investigation. If the outcome favors the consumer,
the matter would be considered resolved. But, if no error is
found, the financial institution must notify the consumer of
such findings within three business days, after which they
may debit the consumer's account for the disputed amount.
If the consumer has a reason to believe and can prove that a
financial institution did not make a good faith effort to
investigate their claim, or, that their account was not
provisionally credited within the required 10-day period,
or, if a bank cannot prove a reasonable basis for denying an
error occurred, a consumer may file suit seeking treble
(triple) damages.
* * End of CORRECTING DEBIT CARD BILLING ERRORS * *