Yes, Regulation E's error resolution procedures do apply to ACH transactions. However, if you determine that an error occurred, Regulation E does not require you to send an actual letter to inform the customer after concluding an investigation and crediting the customer's account.

Regulation E's error resolution procedures are triggered whenever a consumer gives notice of an “error,” and “error” is defined to include inquiries about incorrect “electronic fund transfers” to or from the consumer's account, the omission of an “electronic fund transfer” from a periodic statement, and other issues involving “electronic fund transfers.” Importantly, Regulation E defines an “electronic fund transfer” to include an ACH transfer.

However, with respect to communicating with the customer after an investigation, if you conclude that there was an error, you are not required to send an actual letter — Regulation E permits you to inform the customer of the result of the investigation either “orally or in writing.” You also may provide this information on a periodic statement as long as the statement is mailed or delivered within the appropriate time limits and “clearly identifies the correction to the consumer's account.” If you do provide an oral notice to the customer, you should document it as proof of compliance with the rule.

Note that if you conclude that there was no error or a different error occurred, Regulation E requires you to send an actual letter to the customer explaining your findings and informing the customer of the right to request the documents used to make your determination.

For resources related to our guidance, please see:

• Regulation E, 12 CFR 1005.11(a)(1) (The term “error” means “an incorrect electronic fund transfer to or from the consumer’s account; the omission of an electronic fund transfer from a periodic statement . . .”)

• Regulation E, 12 CFR 1005.11(c)(1) (“A financial institution shall investigate promptly and . . . shall determine whether an error occurred within 10 business days of receiving a notice of error. The institution shall report the results to the consumer within three business days after completing its investigation.”); 12 CFR 1005.11(c)(2)(iv) (“The institution may take up to 45 days from receipt of a notice of error to investigate and determine whether an error occurred, provided the institution does the following: . . . Reports the results to the consumer within three business days after completing its investigation . . . .”)

• Regulation E, Official Interpretations, 12 CFR 1005, Paragraph 3(b)(1), Comment 1(ii) (The term “electronic fund transfer” includes “a transfer sent via ACH. For example, social security benefits under the U.S. Treasury’s direct-deposit program are covered, even if the listing of payees and payment amounts reaches the account-holding institution by means of a computer printout from a correspondent bank.”) 

• Regulation E, Official Interpretations, 12 CFR 1005, Paragraph 11(c), Comment 1 (“Unless otherwise indicated in this section, the financial institution may provide the required notices to the consumer either orally or in writing.”)

• Regulation E, Official Interpretations, 12 CFR 1005, Paragraph 11(c), Comment 5 (“A financial institution may include the notice of correction on a periodic statement that is mailed or delivered within the 10-business-day or 45-calendar-day time limits and that clearly identifies the correction to the consumer's account.”)

• Regulation E, 12 CFR 1005.11(d)(1) (Procedures if financial institution determines no error or different error occurred. “The institution's report of the results of its investigation shall include a written explanation of the institution's findings and shall note the consumer's right to request the documents that the institution relied on in making its determination.”)