I have a customer that is negative in their checking account. I have submitted a task to our Operations Department to "restrict" the account for any further debits.
I am told that we can indeed restrict the account, HOWEVER, any automatic / reoccurring debits via the debit card CANNOT be restricted.
Is anyone familiar enough with Reg E to confirm this as true? I find it hard to believe that we can restrict a POS or ATM transaction via debit, but not an auto/reocc debit. I think it's more of a system issue than anything, but I could be wrong.
Just seems counterproductive to say an account is restricted with no debits (checks, ACH, cash, POS and ATM), when in fact some debits can slip through. Any guidance would be appreciated.