Error Resolution

Procedures for correcting disputed transactions to a consumer's bank account, under Federal Reserve Regulation E. A consumer claiming that funds were taken from an account by another person's Unauthorized Transfer without prior consent, or a transaction was posted improperly due to a bank bookkeeping error, can have the error corrected by notifying the financial institution holding the account. Once notice is given, the financial institution has from 10 to 45 days to investigate the complaint and recredit funds debited in error. The consumer's account liability is limited by regulation to $50 if the bank is notified of the error, but otherwise can be as high as $500. See also Provisional Credit.