Error Resolution

DEFINITION of 'Error Resolution'

A procedure that allows consumers to dispute bookkeeping errors or unauthorized transactions related to their commercial bank accounts. Federal Reserve regulations require that financial institutions investigate all complaints and re-credit all funds debited in error.

BREAKING DOWN 'Error Resolution'

The financial institution usually has between 10 and 45 days to investigate complaints. Federal regulations limit consumers' account liability to $50 if the bank is notified of the error, but can go as high as $500 otherwise.

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