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#1005863 - 07/28/08 02:05 PM ACH question
RBanker Offline
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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.
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#1006045 - 07/28/08 04:27 PM Re: ACH question RBanker
'Lil Freak! Offline
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The psych ward
One option is to provide a readily-available telephone line (ยง205.10). Take a look at your EFT account agreement to see if this option is how your institution addresses the notification issue.
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#1006146 - 07/28/08 05:12 PM Re: ACH question 'Lil Freak!
RBanker Offline
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Got it - thanks!
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#1006704 - 07/29/08 01:29 AM Re: ACH question RBanker
rlcarey Online
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"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.
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#1006882 - 07/29/08 01:33 PM Re: ACH question rlcarey
RBanker Offline
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Well, the question was generic to both debits and credits - do we not have to notify regarding ACH debits?
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#1006956 - 07/29/08 02:26 PM Re: ACH question RBanker
John Burnett Offline
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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).
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