Yes, we believe that your bank may charge a service fee for investigating a customer’s notice of error, provided that your bank has determined that no error occurred.

Regulation E prohibits banks from charging a fee for “any aspect of the error-resolution process” if a billing error occurred. But if there has been no billing error, banks may charge a fee, provided they “avoid any chilling effect on the good-faith assertion of errors.”

We do recommend that your bank conduct an independent analysis of whether the predecessor bank’s fees are reasonable and whether charging a separate fee for each unauthorized item might be viewed as having such a chilling effect.

For resources related to our guidance, please see:

• Regulation E, Official Interpretations, Paragraph 11(c), Comment 3 (“Charges for error resolution. If a billing error occurred, whether as alleged or in a different amount or manner, the financial institution may not impose a charge related to any aspect of the error-resolution process (including charges for documentation or investigation). Since the Act grants the consumer error-resolution rights, the institution should avoid any chilling effect on the good-faith assertion of errors that might result if charges are assessed when no billing error has occurred.”)

• Regulation E, 12 CFR 1005.11(d) (“Procedures if financial institution determines no error or different error occurred. In addition to following the procedures specified in paragraph (c) of this section, the financial institution shall follow the procedures set forth in this paragraph (d) if it determines that no error occurred or that an error occurred in a manner or amount different from that described by the consumer: . . .”)