Regulation E (Reg E) Compliance

Through Reg E, the Electronic Funds Transfers Act (EFTA) of 1978 requires all financial institutions to follow specific error resolution procedures when notified by a consumer about an alleged error involving their asset account and an electronic-funds-transfer (EFT).

In order to comply with Reg E, financial institutions must ensure that all applicable employees are trained on the regulation’s obligatory customer notifications, the set timeframes for investigations, the accurate accounting of provisional credit and the appropriate calculation of liability of either the institution or the customer. 

Although the original intent of the act, protecting consumers, has not changed, the compliance burden on financial institutions has mounted as the number and type of electronic payments have multiplied since EFTA’s enactment. In 2007, the Federal Reserve estimated that over two-thirds of all payments were electronic. As this trend continues to increase year after year, manual Reg E compliance programs become more ineffective and thus riskier for financial institutions.

ATTUS Technologies’ WatchDOG® for Reg E automates the entire error resolution process, relieving the stress of Reg E compliance on your front line and back room staff while ensuring an accurate and compliant investigation and resolution of the claim. 

The Federal Reserve has published a booklet for consumers that explains overdraft protection programs and overdraft fees. The booklet called "What You Need to Know: New Overdraft Rules for Debit and ATM Cards," contains a plain English explanation of the new rules relating to overdrafts and advice to consumers on managing their accounts.

Properly defined, Reg E: Establishes the rights, liabilities, and responsibilities of parties in electronic funds transfers and protects consumers when they use such systems. For a broad overview of the regulation’s requirements, click here: http://www.federalreserve.gov/bankinforeg/regecg.htm.