An RCC cleared a customer's account about a month ago and the customer is saying that the item was not authorized. I know that the bank of first deposit warrants these items, but until recently we were always able to return it through the system. Now they are saying we can't. Do most banks deal directly with the BOFD on these types of returns and if so, do you just write a letter and include an affidavit from the customer? The BOFD is a very large bank and we aren't sure it will end up in the correct department by doing it this way.

Who is the "they" that is saying you can't return through the system? Was there a reason given?

We use Fiserv as our processor and they recently made changes so everything goes through the Fiserv Clearing Network instead of Fed. Fed said since it didn't go through them we can't adjust through the Fed, which makes sense I guess, but Fiserv is saying we can't send it back through them either that we have to deal directly with the BOFD.

the Fiserv clearing network should have adjustment staff that will work with you on this...

If the check came to you via Fed and you get an affidavit that it was not authorized to be paid to the named payee for the stated amount, you should be able to use the WIC/URCC check adjustment return within 90 days of the cash letter for the original presentment.

That sounds like that might be the problem because it didn't come to us from Fed it came to us from the Fiserv Clearing Network and they apparantly don't have a way to make the adjustment.

OK. Then you have to go bank-to-bank on a "without entry" warranty claim. I'd take the time to contact the big bank and ask where to send the claim, rather than trust to luck.

Sounds like they need to update their marketing pitch:

Cost-Effective FCN Return Service
FCN return supports the effective clearing of outgoing return items utilizing cost effective electronic clearing with our strategic clearing partners.

The Fed had a strategic advantage when it set up its adjustment process for URCCs (unauthorized remotely created checks): it can act unilaterally because it controls the rules and the reserve accounts used for the settlement of such adjustments. Private sector clearinghouses don't have that luxury -- they often need participant approval. I don't know the structure or the rules of the FCN.