Error Resolution(Banking) Law and Legal Definition
Error resolution is a method for correcting disputed transactions to a consumer's bank account. The method is provided by the Regulation E of the Federal Reserve. A consumer claiming an unauthorized transfer or an improper transaction due to a bank bookkeeping error can be corrected by error resolution. According to Regulation E, when a notice is given, the financial institution has to investigate the complaint within 10 to 45 days. The bank is to re credit funds debited in error within the prescribed period. The method allows consumers to dispute improper transactions relating to their commercial bank accounts.