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#2236056 - 05/01/20 04:57 PM ACH Origination
Jenny Roberts Offline
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Joined: Feb 2014
Posts: 162
Tennessee
We have a customer that has an business checking account at another financial institution and has been told by them that the only way he can get his money out is if we do an ACH withdrawal from it. We have never done this before and wonder if there is anything else we would require besides a signed agreement between us and the customer. Also is there any compliance issues I need to be aware of?

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#2236057 - 05/01/20 05:19 PM Re: ACH Origination Jenny Roberts
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,275
Illinois
I would be very wary as your customer's statement doesn't make a lot of sense to me. Consider the risk that if the account we're debiting is actually a consumer account, the owner of the account has 60 days to claim the ACH debit is not authorized and the debit comes screaming back at you.

What are the circumstances surrounding this request and how well do you know this customer?
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#2236060 - 05/01/20 05:35 PM Re: ACH Origination Jenny Roberts
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,283
Galveston, TX
The other option is to tell him "We are glad to assist. Close that account and move all your money to the account here. Whatever business services you currently have at the other institution, we can set up here for you. We will give you immediate credit on the cashier's check you bring over".

In other words - like Brian indicated - don't get involved.
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#2236072 - 05/01/20 07:45 PM Re: ACH Origination rlcarey
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 162
Tennessee
It is a well known customer and they did a PPP loan thru another bank because their operating business DDA was with them but their payroll with us. The bank that did the loan said they only way they could take out the money is via ACH???I think they are trying to get them to move their payroll account there but looks like we may end up getting all of their business because that bank has been a hassle to deal with!

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