Who Enforces Regulation E for Individual Cases? Nobody!

[ERIC VERNON]

Jurisdiction

California

I informed my bank that my bank account was drained by fraud. I called in and visited in branch. I was told that I would have liability due to the manner of the fraud. I filed a Reg E complaint with the OCC, then the CFPB, the Dept. Of Consumer Affairs, The Fed, and others. First, my bank said they needed more information, specifically the last four of my debit card, and when I couldn't remember, I was told that couldn't complete my claim. I went down to the bank on two different occasions, provided proof to the bank manager, and had a meeting with him. The bank is now stating that I never filed a claim. The bank manager can't remember me ever going in there, even though I had a witness and the papers he printed out for me. They have given me the run around for two years. They even told me that I had to call in and when I did told me that they "re-opened" my claim. Then they said there never was one. I have scoured the internet trying to find an attorney to assist me with this because this bank is blatantly violating Reg E and the CFPB isn't doing jack about it. All they do is get the bank to answer you, and even then my bank did not respond in time, and when I reasserted the claim, I did so on the CFPB website, and still the bank isn't refunding me my money. This is unspeakably unfair.

 

[PayrollHRGuy]

If you were the victim of fraud you should report the crime to the Police.

 

[Tax Counsel]

I have scoured the internet trying to find an attorney to assist me with this because this bank is blatantly violating Reg E and the CFPB isn't doing jack about it.

It is now the CFPB that has the jurisdiction to enforce Regulation E. While the regulations were originally issued by the Federal Reserve after the CFPB was created those regulations and the responsibility to enforce them were transferred to the CFPB. You cannot force the CFPB to act. It may be that, while you think your case for a violation of the regulation is very clear, the CFPB and the bank may not see it that way.

Under the regulation when there is an unauthorized transfer of funds from the account your liability for the loss is limited based on how quickly you notified the bank. So how fast after this unauthorized transfer did you first notify the bank? And what is the total loss at issue here?

 

[adjusterjack]

still the bank isn't refunding me my money.

Did you ever follow the proper reporting procedures outlined in your account holders agreement (your contract with the bank)? Those agreements typically require you to submit your report in writing to a specific address that has its own phone number for you to continue contact. And you have a limited amount of time to do it. There is also a warning that the bank isn't responsible for anything if you fail to comply with the required procedures.

 

[ERIC VERNON]

I did. First, I called fraud. Spoke with two different reps. The first one froze my online account access, and the second told me because I didn't know the last four of my debit card, my claim could not be completed. Once I had the information, I drafted an affidavit and went with a witness to the branch, provided proof of the fraud (an sd card) to a banker who forwarded it to the manager, who I followed up with the following week. He assured me he forwarded the proof to fraud; and yes, I was within the time constraint of 60 days, and I contacted the bank after I contacted police. Police showed little interest in helping me. I also called in to corp. when I received a letter instructing me to. I was told at that time that my case was "re-opened", only to read in their response to the CFPB that they knew of no claim I ever filed.

 

[adjusterjack]

How did the fraud occur?

How much money was taken?