Q: Must the credit union refund fees charged to an account as the result of an unauthorized debit card transaction, or could the credit union refund only the transaction amount?
A: Because the credit union must make the member whole, it must refund fees as well as the transaction amount. The CFPB’s official staff commentary to Regulation E Section 1005.11(c)(6) confirms that “if the financial institution determines an error occurred…it must correct the error (subject to the liability provisions) including, where applicable, the crediting of interest and the refunding of any fees imposed by the institution.” For example, in a combined credit/electronic funds transfer (EFT) transaction, the credit union would refund any finance charges incurred as a result of the error. The credit union wouldn’t need to refund fees that would’ve been imposed whether or not the error occurred.
Q: How long must a credit union website maintain copies of e-statements online?
A: The federal ESIGN statute doesn’t prescribe how long to keep records available online. The Federal Reserve Board’s former electronic communication regulations required online disclosures to remain posted for 90 days. But the Federal Reserve Board withdrew these regulations in 2007. So, the credit union can decide how long to maintain these documents online.
Q: Does the credit union have to perform enhanced Unlawful Internet Gambling Enforcement Act (UIGEA) due diligence at account opening for consumer accounts?
A: No. Credit unions must have policies and procedures in place that demonstrate they’re exercising enhanced due diligence when opening accounts for “commercial customers” to prevent illegal Internet gambling operations from setting up accounts at the credit union. The UIGEA regulations don’t apply to consumers’ personal or individual accounts.
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