Reg E vs ACH Rules

Recorded on November 15, 2016   |   With Andy Zavonia and John Burnett

Reg E vs ACH Rules

With Andy Zavonia and John Burnett
  • 1 Video
  • 2.0 hrs
Course description
Test Your Knowledge! (Free)

ICB Credit: 2.5 CRCM

Assume your customer had a charge to her checking account and she says it wasn't hers or is incorrect for any number of reasons. Does this fall under Reg E as an unauthorized charge? It may, and while you may pay the claim to make your customer happy, your financial institution is suffering the loss. Who benefitted from this transaction, and are there ACH return rights you could use to recover the loss? The consumer may be protected by Reg E and the bank may be protected by the ACH rules. Defining what your bank should do is what this webinar is all about.

Andy will discuss the proper handling of Reg E error resolution claims. Examiners review claims because they involve consumers' rights and funds. Reg E violations don't generally attract heavy penalties, but institutions need to be cautious because enforcement trends are changing. UDAAP -- Unfair, Deceptive or Abusive Acts or Practices -- is becoming the enforcement tool of choice because violating Reg E means violating an agreement with consumers and that triggers UDAAP exposure. "But that's the way we've always done it" can lead to a false sense of security. Something that has slipped under the radar in past exams may become the focus for criticism when your regulator makes its next visit.

John will discuss the ACH facets of handling claims and what the bank should and should not do. Your bank's employees who handle claims need to understand that different transaction types have different authorization procedures. A TEL- telephone transfer is different than a transaction conducted in-person. Tune in to find out what procedures the bank should have to properly handle these and other ACH EFT claims and reduce losses.

During the webinar, John and Andy will discuss:

  • when Reg E applies and when it doesn't
  • the four investigation time periods under Reg E
  • what you can't require
  • interim steps required during your investigation
  • when provisional credit is required
  • determining how much to pay a customer
  • tips for distinguishing valid claims from those you need not pay
  • required error resolution notices
  • when notices must be provided
  • reversing provisional credit, and refunding fees
  • how to reverse provisional credit without refunding fees
  • return timeframes under the ACH rules
  • required documents for returns
  • why you can't always return what you have to pay out

Electronic transactions continue to increase both in number and type. This trend is expected to continue and with it, your exposure to liability. Today's budgets are too tight to pay a claim needlessly. With interchange fees regulated, your bank has tighter margins and less money to lose on error claims, so you need to ensure employees are handling claims correctly and loking for ways to recoup those losses. It may be as easy as returning the ACH transaction. But to do this, you must know the rules to follow. This webinar will get you up to speed.

Please note that a basic understanding of ACH rules and Reg E is assumed and that MasterCard and Visa rules and procedures will not be addressed during this session.

Course Curriculum

Reg E vs ACH Rules
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Questions and Answers
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Andy Zavonia and John Burnett
Andy Zavonia and John Burnett

John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking, and is also a graduate of the BAIs and the Massachusetts Banker Associations Schools of Banking.

John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company.

John joined Glia Group, Inc. and the team in June, 2004. He is a frequent presenter of BOL Learning Connect webinars, and at BOL Conferences events.

He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force as Regulation DD was being written, and has served on several ABA and Massachusetts Bankers seminar panels.

Mr. Andy Zavoina, CRCM, is an Executive Vice President with the Glia Group, Inc., best known for its involvement with He joined Glia and BOL in 2003.

Mr. Zavoina has been in finance and banking for 35 years. Over 20 years were with a two-bank holding company that had $534 million in assets, 89 branches spanning Texas and nearly 500 ATMs. He has done loan workouts, has been a consumer, commercial and real estate lender and managed those departments, as well as being his banks first Webmaster. He was responsible for compliance -management, -auditing, and -training for both banks.

Mr. Zavoina is a recipient of the American Bankers Association’s Distinguished Service Award for his involvement and accomplishments in the field of regulatory compliance management. He is a past Chairman of the ABA’s Compliance Executive Committee, the Editorial Advisory Board for the ABA Compliance Magazine and served as a member of the ABA’s Compliance School Board. He is a BankersOnline Guru. He also served on the Texas Bankers Association's Compliance Committee.

He is a graduate of the ABA National Commercial Lending School, National Compliance and National Graduate Compliance School and is a Certified Regulatory Compliance Manager with the Institute of Certified Bankers. He has written articles and lectured on compliance, the use of the internet and technology as a tool, as well as compliance in cyberspace to local, state and national associations across the U.S. and teaches basic compliance and compliance management.

You can reach Andy on the Internet by using his e-mail address,, or visiting