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• Failing to provide required documents and referrals . The bank did not provide the required acknowledgment and denial notices to some individuals who submitted billing error notices , which state their disputes have been received and , in certain cases , the dispute was denied . Further , the bank did not disclose required credit counseling information to consumers on a toll-free number , as required by the Credit Card Accountability Responsibility and Disclosure ( CARD ) Act .
Citizens Bank Response
Citizens Financial Group stated in a press release they identified the errors in 2015 , reported them to the CFPB and voluntarily began and completed remediation efforts shortly after discovering the issues .
Regulation Z and Commentary
Regulation Z and commentary lay out specific steps individuals must take to report credit card disputes and fraud claims . If a consumer reports a billing error or fraud , the credit card issuer is required to investigate the allegations and send certain notifications to the individual . When claims are valid , they must refund the error or fraud amount .
Background on Billing Errors
A billing error is classified as one ( or multiple ) of the following :
• A charge on the periodic statement not made to a person who has actual , implied or apparent authority to use the consumer ’ s credit card or open-end credit plan .
• A charge on the periodic statement not identified with the seller ’ s name , and the city and state where the transaction took place ( with exceptions ).
• A charge for property or services not accepted by the consumer .
• Failure to properly credit a payment or other credit issued .
• Computational or similar accounting error made by the creditor .
• A charge for which the consumer requests additional clarification .
• The creditor ’ s failure to mail or deliver a periodic statement to the consumer ’ s last known address if that address was received , in writing , at least 20 days before the end of the billing cycle .
A billing error notice is a written notice from a consumer received by a creditor at their disclosed address no later than 60 days after the creditor sent the first periodic statement reflecting the alleged billing error . It enables the creditor to identify the consumer ’ s name and account number , as well as indicate the consumer ’ s reasons that a billing error exists . The notice specifies the type , date and amount of the error .
What to Do About Billing Errors
If a billing error has occurred , your institution must correct it and credit the consumer ’ s account with any disputed amount and related finance charges . Following the correction , be sure to mail or deliver a correction notice to the consumer .
If the billing error is different or no billing error occurred , within the same timeframes above , mail or deliver to the consumer an explanation that the alleged billing error is incorrect . Additionally , provide copies of documentary evidence if the consumer requests it . If a different billing error occurs , correct it and credit the consumer ’ s account with any disputed amount and related finance charges .
Timeframes for Resolution
Institutions must mail or deliver a written notice to the consumer within 30 days of receiving a billing error notice . It ’ s important to comply with the appropriate resolution procedures within two complete billing cycles , but not later than 90 days , after receiving a billing error notice . Consumers do not need to pay , and the creditor cannot try to collect any portion of the required payment the consumer believes is related to the disputed amount , including related finance charges . Additionally , creditors cannot report the disputed amount to a credit bureau .
Creditors ’ Rights Post-Resolution
If it is determined the consumer owes all or part of the disputed amount , the creditor shall promptly notify the consumer in writing of the time when payment is due and the amount the consumer still owes . Allow for any time period disclosed during which the consumer can pay the amount due without incurring additional finance or related charges .
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