Regulation Z

Smart Dispute Agentic Automation application addresses the following three key sections under Regulation Z guidelines:

• Section 1026.12(b) - Unauthorized Use Liability
  • Optional investigation requirements based on liability imposition.
  • Reasonable investigation mandate for liability claims.
  • $50 liability cap or actual unauthorized use amount.
  • Investigation cannot be denied solely due to missing documentation.
  • Independent liability protections from error resolution procedures.
• Section 1026.12(c) - Cardholder Claims and Defenses
  • Independent operation from billing error provisions.
  • Applies only to credit card purchases (excludes cash advances).
  • Requires attempted merchant dispute resolution.
  • $50 minimum transaction amount threshold.
  • Geographic limitations (same state or within 100 miles).
• Section 1026.13 - Billing Error Resolution
  • 60-day notification window from first statement.
  • 30-day acknowledgment requirement.
  • 90-day maximum resolution timeline.
  • No merchant contact prerequisite.
  • Provisions for voluntary withdrawal of disputes.

Pega Smart Dispute Agentic Automation has Regulations Z configurations set by default. These configurations support the compliance of the dispute case to the federal or government regulations. 

To change the configurations for Regulation Z, follow these steps:

1. Navigate to App Studio > Settings > Regulation Z configuration.
2. Verify and update the required configurations for Statement date evaluation.

When a Visa dispute case is created in the Smart Dispute Agentic Automation application, Regulation Z logic is evaluated, and if the dispute is eligible for Regulation Z, the finality date is calculated. Awaiting Regulation Z screen is created and submitted automatically when the finality date is reached.