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#2103089 - 10/14/16 06:37 PM Notice of Nonpayment
Amandak Offline
Joined: Jul 2013
Posts: 80
Is there a model notice or contents of notice that is required for notice of nonpayment?

Our current notice has a line that states "Your account balance after this activity is:" we are wondering if this line is needed.

I have already looked at Reg. CC part 229.33 which basically says you are required to notify the customer. So, based on that I feel we can remove the line. I just want to make sure I am not missing something before I make my final decision.

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#2103149 - 10/15/16 12:26 PM Re: Notice of Nonpayment Amandak
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
We are talking about a check that was deposited to the customer's account and returned unpaid by the drawee bank...

Paragraph (b) of the section you cite stipulates the requirements for the notice from the drawee bank to the bank of first deposit. Paragraph (d) requires the bank of first deposit notify its customer, but does not stipulate the content. (There is no model form for the notice to the customer.) My hands on experience is dated and subject to update, but it was our practice to forward the information we received from the drawee bank to the customer along with a notice saying we had debited the account for the appropriate amount as well as any fees we imposed.

Providing the customer with the remaining balance would have been a courtesy. I would be reluctant to eliminate it without a good reason.
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#2103204 - 10/17/16 02:01 PM Re: Notice of Nonpayment Amandak
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
In the "good old days," most charged-back checks were sent back with the notice of charge, and the reason for the return, etc., was explained on the check. But with image-based check clearing and charge-backs, the reason for a return is often found in the return item data file, separated from the check image, so sending a copy of the image may not provide the same information customers used to get. To be helpful, then, you'd have to extract and interpret the reason code from that data. If you're working with an advice of charge-back from the paying bank in lieu or advance of actual check or image return, you can include information from the advice.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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