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#1698268 - 05/10/12 05:42 PM direct deposit
pchandler Offline
Junior Member
Joined: Mar 2004
Posts: 37
ky
If joint customers receive direct deposit(gov't benefits) and one dies, could we block ALL ACH credits until such time as to determine what should be returned? Or, must we make the surviving owner's funds available immediately?

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Deposits and Payments
#1698280 - 05/10/12 05:57 PM Re: direct deposit pchandler
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
You should block and return any direct deposit benefits payments for which the deceased customer is the beneficiary. You should not block such payments for which the surviving owner is the beneficiary.
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#1797301 - 03/21/13 06:52 PM Re: direct deposit John Burnett
E. Lavenza Offline
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Joined: Apr 2004
Posts: 111
laboratory
I’d like to resurrect this thread. Once a customer is flagged deceased, the system is set to “kick out” all ACH for manual review. The problem with this is that it “kicks out” all ACH entries. So, ACH direct deposits belonging to a joint accountholder get caught in this net too and may be held up a day or two. Clearly this is a problem! Does anyone have a suggestion for solution?

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#1797319 - 03/21/13 07:22 PM Re: direct deposit pchandler
Juby Offline
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Joined: Jul 2009
Posts: 218
Our processor works this way too. We review all rejected direct deposits the same morning so that any needing manual posting can be taken care of right away. I thought there was a rule that federal benefits had to be made available to customers within a certain time on the settlement date? John or someone else might know? You mentioned a day or two delay. Is that due to the size of your bank or understaffing of your ACH department?

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#1797321 - 03/21/13 07:28 PM Re: direct deposit pchandler
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
If the settlement date is September 3, the funds are supposed to be available at opening of business on 9/3 assuming you have received the data to post the credit and credit via your FRB account (or correspondent account).
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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