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Example of Regulation E

If you have a bank account, Regulation E has some important benefits. It delineates your rights for disputing ATM or debit card transactions if you believe an EFT has been made in error.

This includes counterfeit errors as well as accidental ones.For example, if you decide to cancel a TV streaming subscription service, but you see an additional charge for membership after the cancellation, you could ask the streaming service for a refund, and if you are refused, you could dispute the transaction with your bank according to Regulation E rules.

Enforcement of Regulation E 

Very specific rules for compliance by the EFT service provider are established in Regulation E. These requirements include keeping track of consumer agreements, providing periodic statements, error resolution, reimbursement of fees incorrectly charged to the consumer, providing access to account information, disclosing a telephone number that the consumer can use to contact the financial institution, and so on.

Enforcement depends on various sources of information to identify possible issues that may lead to opening an investigation, including:

  • Consumer complaints
  • The whistleblower hotline of the Consumer Financial Protection Bureau (CFPB)
  • Referrals from federal regulators and other local, state, and federal agencies
  • Market intelligence
  • The results of supervisory exams

Other factors that weigh in on whether an investigation is initiated include if:

  • There is a set of facts that, if proven, would amount to a violation of one or more federal consumer financial laws
  • There is reason to believe that one or more entities is involved in the conduct described in the facts
  • There is evidence of a level of harm that justifies use of resources
  • There are enough resources available to address the matter

A description of the CFPB’s enforcement work (November 2020).