Negative Verification

DEFINITION of 'Negative Verification'

A system of confirming that a bank's records agree with a customer's records. The bank contacts the customer to provide specific information about the account. The customer is asked to respond only if the information is incorrect; otherwise, it is assumed to be correct.

BREAKING DOWN 'Negative Verification'

Negative verification is the opposite of positive verification, whereby the customer must contact the bank to verify that the information is correct. If a customer believes his or her bank has made an error and the bank disagrees, he or she can contact the Office of the Comptroller of the Currency to try to resolve the problem after trying to have the bank resolve it directly.

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