How quickly must a credit union acknowledge receipt of a borrower's written notice regarding an alleged error?

A credit union is required to acknowledge receipt of a borrower's written notice concerning an alleged error within a specified timeframe to ensure compliance with regulations that protect consumers. This requirement is outlined in the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), which emphasize the importance of timely communication between lenders and borrowers.

Acknowledging the notice within five days allows the credit union to formally indicate that it has received the borrower’s concern, thereby maintaining transparency and accountability. This timeframe ensures that the financial institution is not only responsive but also fosters trust with its members by promptly addressing issues related to their accounts. This response is crucial for keeping borrowers informed about the steps that will be taken to investigate and remedy the claimed error, showcasing the credit union's commitment to customer service and regulatory compliance.