Skip to content
GeoDataVision
Thread Options
#1005863 - 07/28/08 02:05 PM ACH question
RBanker Offline
Power Poster
RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
This is probably two questions I suppose, so I hope this isn't too taxing for a Monday morning?

1) Are we required to notify customers of ACH items that clear their account?
2) And if so, must we mail individual notices of activity, or is a statement adequate notification?

I've never heard of this, but I've also only worked where back office operations handled this type of stuff - so maybe I've missed something.
_________________________
My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

Return to Top
Deposits and Payments
#1006045 - 07/28/08 04:27 PM Re: ACH question RBanker
'Lil Freak! Offline
10K Club
'Lil Freak!
Joined: Sep 2005
Posts: 10,596
The psych ward
One option is to provide a readily-available telephone line (205.10). Take a look at your EFT account agreement to see if this option is how your institution addresses the notification issue.
_________________________
No, I didn't lose my mind. It got scared and ran away.

Return to Top
#1006146 - 07/28/08 05:12 PM Re: ACH question 'Lil Freak!
RBanker Offline
Power Poster
RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
Got it - thanks!
_________________________
My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

Return to Top
#1006704 - 07/29/08 01:29 AM Re: ACH question RBanker
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
"Are we required to notify customers of ACH items that clear their account?"

Are you talking about debits or credits. The notification or telephone number option only applies to recurring credits.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1006882 - 07/29/08 01:33 PM Re: ACH question rlcarey
RBanker Offline
Power Poster
RBanker
Joined: Jul 2003
Posts: 2,675
Austin Texas
Well, the question was generic to both debits and credits - do we not have to notify regarding ACH debits?
_________________________
My comments are absolutely no reflection of, nor influenced by, my employer - take them at your own risk.

Return to Top
#1006956 - 07/29/08 02:26 PM Re: ACH question RBanker
John Burnett Online
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
No, you don't. If you're tempted to do so, consider that you'd be taking a giant leap backward and adding paper back into an "electronified" process.

The notice requirement for pre-authorized credits was inserted in the EFT Act to help make direct deposit more palatable to customers back when separating SSA recipients from their paper check habit was a real challenge. Fortunately, banks were able to lobby in favor of the third (telephone line) option. Without it, we'd probably have wiped out millions more acres of trees (not to mention the fact we'd have eliminated an excuse for banks' elderly customers to call the bank every month to find out if the monthly SSA payment has arrived).
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  John Burnett