Exit Reg E versus ACH Quiz Question Title 1. When a consumer claims that six months of ACH withdrawals from her account weren't authorized, I know we can return the items posted in the last 60 days. Does that mean we should reject the claim for the other four months? a. The consumer is covered by Regulation E, too, so if the entries were unauthorized, you have to follow the consumer liability rules in section 1005.6 first. If you are able to return the two most recent entries under ACH rules, that's added to what the consumer recovers. b. Since the bank can recover the debits posted in the last 60 days, that's what the customer gets. c. If the consumer doesn't provide a written statement of unauthorized debits, we can't return the two most recent unauthorized ACH items. d. a and c Question Title 2. The bank's consumer customer stopped payment on check #4567 payable to J-Mart for $159.75. Five days later, a check-conversion ACH for that check posted to the customer's account, and the bank's system failed to match the ACH entry with the stop payment. The customer caught the error on her statement and called to complain. Which of the following statements is NOT true? a. The bank can return the ACH debit even though it has been 20 days since it posted. b. The bank must obtain a written statement of unauthorized debit from the consumer before returning the ACH debit c. The stop payment on the check covers the ACH entry d. The bank does not need further documentation from the customer. Question Title 3. Your bank's cashier's check for $1,500, payable to John Smith, was converted by J-Mart into a POP ACH entry. Your accounting department is concerned that the original check might also be presented for payment. Can the ACH entry be refused? a. No. The POP entry has the same legal status as the original check, and must be paid. b. No, but the bank can later refuse payment on the original cashier's check. c. Yes, because a cashier's check is not eligible for conversion to ACH format. Question Title 4. Sarah Soundcastle gave her satellite TV provider an authorization to charge her checking account $40 each month for the service. In April, there was a service problem that took three weeks to correct. Sarah told the provider she would not pay the April payment, and signed a stop payment order at the bank for the April payment. How long is Sarah's stop payment order for the April $40 payment valid? a. Only until the April payment is stopped and returned, or six months, whichever occurs earlier. b. Because it's a pre-authorized ACH debit under Regulation E, it's valid until canceled by Sarah. c. Six months. Question Title 5. Harry Jones, Inc. claims that its account has been charged $125 a month for the last six months by a supply company without authorization. Your records show the charges were ACH entries, and the ODFI failed to provide your bank a copy of any authorization. Your depositor signed a written statement that the charges were not authorized. Which of the following is/are true? a. Under Regulation E, your customer may be entitled to reimbursement for two or three of the earliest transfers. b. Your deposit contract with Harry Jones, Inc. will determine how much reimbursement your customer is entitled to, in addition to any transfers your bank is able to return. c. Regulation E does not apply because Harry Jones, Inc. is not a consumer. d. b and c Question Title 6. Would you like to receive a coupon for $25 off ANY On-Demand Webinar or Subscription? Please enter your email address and we'll be happy to send one to you. No thank you, I'd rather pay full price. Yes, here's my email address. Please send me a coupon for $25 OFF Done
