Skip to content
BOL Conferences
Thread Options
#2167411 - 03/09/18 04:04 PM Reg E/ACH Rules Help Needed
Complycated Offline
100 Club
Joined: Aug 2013
Posts: 168
A customer came in today and notified us that a company had taken two unauthorized withdrawals from his checking account. The first was $2,800.00 on 12/22/17 and the second was $3,500.00 on 3/5/18. According to Reg E since the second withdrawal is more than 60 days from the 12/31/17 statement date of the first withdrawal we are thinking he has no liability for the $2,800.00 and he's on the hook for the $3,500.00. But according to ACH rules we can return the $3,500.00 through the ACH network but not the $2,800.00. We are hung up on how to proceed. Any help would be much appreciated.

Return to Top
eBanking / Technology
#2167433 - 03/09/18 05:15 PM Re: Reg E/ACH Rules Help Needed Complycated
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
NACHA rules indicate if you can retrieve the $3,500, you have to give it to the customer. You cannot use it to offset a bank loss. Someone like Brian would have to provide the specific rule.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2167480 - 03/09/18 08:09 PM Re: Reg E/ACH Rules Help Needed Complycated
Complycated Offline
100 Club
Joined: Aug 2013
Posts: 168
We are having zero luck contacting the originator to try to resolve the $2,800.00 transaction. Does that mean we just have to eat that one and then return the $3,500.00 through the ACH network and credit it back to the customer also?

Return to Top
#2167517 - 03/09/18 09:42 PM Re: Reg E/ACH Rules Help Needed Complycated
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,694
Illinois
Since the notice was not timely, 1005.11 does not apply so no provisional credit and not finalizing in 45 days. However, ultimately you are on the hook for the early charge of you cannot resolve. If you return the more recent charge, this money must be given to the customer.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top
#2167521 - 03/09/18 09:50 PM Re: Reg E/ACH Rules Help Needed Complycated
Complycated Offline
100 Club
Joined: Aug 2013
Posts: 168
Thanks for the clarification!

Return to Top
#2167804 - 03/13/18 03:22 PM Re: Reg E/ACH Rules Help Needed Complycated
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,844
Pulling people out of the ditc...
Originally Posted By Complycated
We are having zero luck contacting the originator to try to resolve the $2,800.00 transaction.


reach out to your local NACHA regional association, or NACHA directly, and ask them to help you file a NACHA Rules Violation, that will get both the ODFI and Originator's attention, and get you a response. The ODFI/originator is responsible for providing proof of authorization within 10-days of your request, so if they are not doing such they are in direct violation of the rules. use them to your advantage. the ODFI may agree to a late return and charge back to the originator, I have seen this more than once.
_________________________
Providing alternative truths since the invention of time

Return to Top

Moderator:  Andy_Z