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Course description

One big bank paid a $3.5M civil money penalty and $12M in restitution. Why? In part it failed to handle Reg E claims correctly. It also failed to handle stop payments correctly and had other issues, but Reg E claims were a major issue. So Reg E remains in the compliance spotlight because it is consumer protection. We will look at the 4 commonly cited Reg E violations from the CFPB. UDAP penalties have been imposed numerous times because of a disconnect between what banks disclosed using model Reg E forms and what it actually did. The offending institutions received negative press, adding “insult to injury” in addition to the CMPs they had to pay and the increased scrutiny in future exams. 

Sometimes you need to pause, take a breath and look at the forest. That is why I invite you to join me on a review of Reg E from disclosures, to procedural requirements, to claims. I always include claims in our discussions of Reg E because that is often where the day-to-day stress is. But you also have to understand your disclosures and how you actually “do” what you disclose. 

There are basic questions that I see again and again such as “the card and PIN were loaned to a 3rd person, so they have authority to use that card forever, right?” Wrong! And “family fraud” isn’t a valid claim, right? Wrong! I’ll cover these. 

EFT use is increasing. This means an increase in claims. When there is a financial loss, you already know that the bank loses!  But there is more than one way to lose money on a claim. Do you have to investigate all claims? No. Are you charging off more in losses than is necessary? Maybe. Are there big penalties against banks for handling Reg E the same way they have for years? You can bet on it! 

In this webinar, we will discuss the basic Reg E requirements and then there will be a focus on claims for unauthorized withdrawals. You must know when a claim is valid and has to be paid, and when it is not. Otherwise, you are cheating the bank, or the customer. 

We will review the meat of Reg E - disclosures, in addition to the claims. I’ll look at the claims process and when it is just cheaper to pay the claim, and what safeguards you should have to avoid abuse of your process.

During this session, we’ll discuss: 

  • Regulatory hotspots — what is being violated and how to avoid doing the same
  • Workflow for Reg E claims
  • Tips and tricks to effectively compute liability for unauthorized withdrawals 
  • Definitions which guide the regulation
  • Basic disclosure requirements of Reg E (a UDAP gotcha!)
  • What constitutes a covered EFT
  • Exceptions and special provisions
  • Consumer liability limits for unauthorized withdrawals, and
  • Ways that Compliance and Audit can audit the process. 
  • An overview of the overdraft fee rules and the UDAP confusion some banks have had;
  • An overview of the gift card rule

Disclosure issues still lead to complaints. It is important that your staff have the basics of Reg E clearly understood. It is equally important that you understand the claims procedures. If claims are handled incorrectly, the losses can be extreme. You need the confidence that everyone is following the same procedure and that it is according to the regulation.

This webinar is focused on Reg E and will not address specific ACH rules or card association rules involving merchant chargebacks. These, and overdrafts and remittance rules are discussed at length in webinars dedicated to those topics.



Andy Zavoina

Mr. Andy Zavoina, CRCM, is an Executive Vice President with the Glia Group, Inc., best known for its involvement with BankersOnline.com. He joined Glia and BOL in 2003. Mr. Zavoina has been in finance and banking for over 42 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, [email protected], or visiting http://www.bankersonline.com.

Course curriculum

  • 1


    • Access Webinar

  • 2



    • SLIDES

    • EFT Unauthorized Withdrawal Workflow Form

    • Sample EFT Error Report


    • Sample Error Dispute Form Example 3

    • Investigation Letters

    • Questions and Answers


5 star rating

Reg E and the EFTA

Deposit Operations

Very well presented thank you for all the information

Very well presented thank you for all the information

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5 star rating


Roslyn Harrell

I think the content was great. I think it should have been longer so presenter didn't have to rush and not able to answer questions.

I think the content was great. I think it should have been longer so presenter didn't have to rush and not able to answer questions.

Read Less
5 star rating

Brian Crow

Neline Thomas

star rating

5 star rating


Bob Nelson