A member had an unauthorized transaction on their account from a local utility company. They did contact us after they received their statement, but they only requested some more information in order to handle it with the utility company on their own. By the time they came back to us because the utility company couldn't release any information, the 60 day time period has passed.

I tried to contact the utility company on behalf of our member and did find that the name on their account for this transaction is not our member, but they said the only way they can open a dispute/refund our member is on the basis of the transaction being returned.

I contacted the ODFI to do a late return (we are a small financial institution, and we have never had to do this before) and was told to fax over a letter of request for proof of authorization and request that the funds be returned. Is there a standard type form for this letter? I'm not sure what information needs to go in this letter. Can anyone point me in the right direction? Thank you!

There is no standard form for the letter. I recommend you include the date and amount of the transaction, the name of your member from the ACH record of the transaction, and any utility company account number information you might be able to glean from the ACH record. Ask for a copy of the authorization to be faxes back to you, or, if no such record can be obtained from the Originator, an authorization to make a late return of the debit entry. Include contact information in the signature block in case the ODFI needs to follow up with you.

Thanks so much!

Is there a time line that they have to respond with the Proof of Authorization?

they have 10 banking days per NACHA rules...Article 2.3.2.5(b)

Is there any recourse if there is no response to a poa request?

yes, file a rules violation claim with Nacha.

I think they have 20 days under the COVID temporary rules.

But a rules violation doesn’t help for the specific transaction being disputed. I have a $300,000 transaction that the ODFI has ignored 4 written attempts and 3 phone calls.

For that amount of money, I assume you have engaged competent legal council, which is what should have probably happened prior to the first attempt. And definitely happened prior to the second attempt. Anything we have to offer is going to be pretty meaningless.