What are other financial institutions doing when receiving a Death Notification Entry? Management here chooses to do nothing and has remarked that they'll wait to do something when we receive a notice of reclamation. While NACHA rules don't require banks to do anything with these entries, I feel like we should be placing a stop payment to prevent issues during the reclamation process (money was spent before the bank is notified to return benefits paid after death). Just wanted to hear what others are doing. Thanks!

If it is a single name account we will place a management hold on the account to prevent any unauthorized withdrawals especially by electronic means. We also deactivate the internet banking codes and ATM/debit card agreements. We have seen too many times that someone who knew the deceased will drain the account electronically before a reclamation officially comes in.

We do the same as Mocha's bank. Also, if it is a joint account all electronic entries get kicked out to review, that way any future payments get returned when recevied. We do this for the same reason, ususally no funds are available when the reclamation comes. I'm surprised your bank choses to take that risk. They will probably think differently when they take a loss!

Thanks for the responses. I'm sure management will feel differently when a loss occurs. You can lead a horse to water, but you can't force him to drink!

Nothing says you can't salt their oats.

much like Mocha - suspend for individual account, review all for joint account. Your management is being willfully negligent in taking the stance they are taking.

Information found in the Gov't ACH handbook called the 'Green Book' will supply some back-up for you if you want to pursue this with management.Specifically, read on the '45 day amount' that financial institution would be liable for. Unfortunately, a real $ loss may have to occur before someone who can change procedures realizes the seriousness of ignoring the DNE. Also, has anyone considered how much harder it is to just wait for a reclamation rather than take care of the issue immediately ?

Surprisingly enough, I think I may have convinced management that we need to take action when we receive DNE entries. Thanks for all your support and sharing. I must have pled a good case!