Skip to content
BOL Conferences Top Gun 23
Learn More - Click Here!

Thread Options
#2086265 - 06/30/16 08:51 PM Liability for Untimely ACH Return?
tdogz Offline
100 Club
tdogz
Joined: May 2012
Posts: 229
If we receive an untimely ACH return (Unauthorized - R10), do we have any liability if we post the return to our customer's account instead of rejecting it by sending it back as R68?

Return to Top
Operations Compliance
#2086267 - 06/30/16 08:55 PM Re: Liability for Untimely ACH Return? tdogz
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,868
Cape Cod
That depends upon your deposit contract with the Originator.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2086274 - 06/30/16 09:13 PM Re: Liability for Untimely ACH Return? tdogz
tdogz Offline
100 Club
tdogz
Joined: May 2012
Posts: 229
Assuming that we (as the financial institution) originated this as a loan payment. As the ODFI, would the customer have any claim if we reversed an old payment (over a year ago) that was made and is now claimed as unauthorized? The payment in question was made from the account of the customer's ex, not of the customer.

Return to Top
#2086317 - 07/01/16 01:16 PM Re: Liability for Untimely ACH Return? tdogz
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,358
Galveston, TX
I would kick it back as a late return. The other bank only has 60 days to return such an item.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2086333 - 07/01/16 01:42 PM Re: Liability for Untimely ACH Return? tdogz
tdogz Offline
100 Club
tdogz
Joined: May 2012
Posts: 229
I would prefer to kick it back, but I was asked by management if we would have any liability if we allowed the late return post. I haven't found any reference yet, but I was hoping I would so they'll let me return it.

Return to Top
#2086337 - 07/01/16 01:48 PM Re: Liability for Untimely ACH Return? tdogz
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Focus instead on the liability to you customer if you have the right to send it back, but fail to do so...
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2086381 - 07/01/16 03:46 PM Re: Liability for Untimely ACH Return? tdogz
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,358
Galveston, TX
Why would you want to place the bank in the middle of a domestic dispute unnecessarily and send a customer into a past due status? Your management is on the wrong side of the fence.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2086468 - 07/01/16 07:15 PM Re: Liability for Untimely ACH Return? tdogz
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,868
Cape Cod
Agreed. You have a deposit contract with your customer. You have no such contract with the other end of this mess (the ex). Since NACHA rules don't permit a late return using the ACH, you should let sleeping dogs lie.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2086469 - 07/01/16 07:17 PM Re: Liability for Untimely ACH Return? tdogz
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,868
Cape Cod
The receiver (the ex) and the RDFI will have to take a warranty claim to the courts to get the funds back.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z, John Burnett