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In Finance, what is Error Resolution?

Article Details
  • Written By: Patrick Roland
  • Edited By: A. Joseph
  • Last Modified Date: 02 April 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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Financial institutions, like banks and government agencies, normally employ very sophisticated techniques in order to balance the numbers appropriately. Once in a while, there is a mistake made in an account. Most reputable institutions have an error resolution department to help sort out these mistakes and take appropriate steps to correct any financial missteps. Each institution has a very specific process for consulting this department, and most are similar from institution to institution.

Error resolution is a financial process that takes place in many industries that deal with money. Many countries, like the United States, have federal laws in place requiring such an internal department to exist whenever money is being handled. Error resolution departments accept complaints of monetary mismanagement on behalf of the institution, investigate these claims and make a ruling based on the findings. There usually is a strict structure in place that allows for full transparency on the behalf of the financial institution in order to prove the accuracy of the investigation's findings.

Most error resolution departments have a three-step process in place for customers to file a complaint. The first piece of information needed is the customer's name and account number to ensure that the account holder is a customer of the institution in question. Secondly, the banking institution needs an exact description of the error believed to have occurred and the date it happened. Finally, the resolution department also needs an exact monetary amount that is believed owed to the customer. These three pieces of information help the researchers follow a paper trail, either physical or digital, to discover if an error was made.

A customer can seek error resolution for any reason, but there usually are three main reasons the error resolution department is consulted. One of the biggest problems for banks and credit card companies is identity theft, so customers often dispute charges if they believe that their personal information has been compromised by hackers. Overdraft fees are another area of dispute for customers whose account is listed as overdrawn but who believe they can prove they should have had money remaining in the account. One reason for a false overdraft, and another error resolution topic, is a sum of money that the financial institution deposited into the wrong account.

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