Is it a NACHA violation if the bank does not have an accurate signed auto payment authorization form on file? For example, customer has signed a document authorizing the bank to pull payments from account 1234567, but the bank has transposed numbers and is attempting to pull from 1234576.
I have a customer that pays his utility bill by direct debit. He has informed us that he just noticed on his banking (checking) statement that 2 ACH debits are debited from his account monthly by my company, and have been for the past 7 years. He never noticed the second debit because he keeps a large balance in his checking account. Upon review we found that the second monthly debit was a direct debit charge from a different consumer. He claims this is fraud and the debits were unauthorized for 7 years. They want to recover all of the unauthorized funds stating there is no time limit and we should follow the States statue limitations of seven years. Is this correct? I can't find any time limits in any of the NACHA rules.
When returning an item, which deadline rule should apply? 60 calendar days from transaction (NACHA) or 60 days from the Statement date (Reg E)?
Does the following safe harbor also apply to identifying recurring check card debits vs. one time check card debits for the purposes of the customer's right to stop payment? Fed Commentary for Opt in 1005.17 ii. Coding of transactions. A financial institution complies with the rule if it adapts its systems to identify debit card transactions as either one-time or recurring. If it does so, the financial institution may rely on the transaction's coding by merchants, other institutions, and other third parties as a one-time or a preauthorized or recurring debit card transaction.
We use a Processing Agent for our online banking funds transfer to other FIs. We have a situation where our member initiated a funds transfer via our online banking to transfer funds from another FI to us. These transactions processed as usual. Now the other FI is stating it is fraud. We are trying to determine our liability (funds have already been spent and it is past the 60 days). It was our understanding that the processing agent would verify the supplied information for things like name match. Our member's name isn't even CLOSE to the individual that the other FI says the funds came from. Is this 3rd party responsible for not verifying this information or do we in fact have to pay back these funds at our loss?
Is ACH governed like a wire transfer? What electronic transfers methods are NOT regulated?
Is the verbal stop payment on a check still only good for fourteen days? I just want to make sure there haven't been any recent changes.
How to Implement Risk-Based OFAC Monitoring Practices
Five steps to risk assessment; ten practices for monitoring
by Timothy R. White, CAMS
Generally our Certificates of Deposit are not accessible by EFTs; however, we do have two or three accounts in which we have a pre-authorized arrangement to transfer the interest earned monthly to an account for the customer at another financial institution. Does this make the accounts subject to periodic statements under Reg E? If so, exactly what type of disclosures are required and how often must they be submitted?
Are there certain audits that should be performed throughout the year for financial institutions? If so, what are the deadlines?