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#620026 - 09/29/06 05:50 PM WSUPP for ACH Disputes
M&M Offline
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Joined: Nov 2003
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Midwest
If a customer does not provide a WSUPP for ACH disputes after we ask for it, we shouldn't be denying under Reg E simply for that reason, I know. But, I'm told we cannot send back an ACH via NACHA without that form. How can we avoid taking losses for all of these items, especially when we may not find any other similar transactions in the customer's history? Thoughts?

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#620027 - 09/29/06 07:19 PM Re: WSUPP for ACH Disputes
John Burnett Offline
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You mean you have a customer that is ornery enough to say, "Gimme back my money, and I don't care that you can't get it back from the SOB who send the transaction"?

A quick answer to your question: You can't, unless you somehow can go after the originator outside the ACH system and prove non-authorization.
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#620028 - 10/02/06 05:24 PM Re: WSUPP for ACH Disputes
Titanic Offline
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Why does your customer does not want to sign the WSUPP?
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#620029 - 10/03/06 01:18 PM Re: WSUPP for ACH Disputes
John Burnett Offline
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I'll let M&M provide the definitive answer to your question, Titanic. However, I can hazard a guess. Enlisting a customer's cooperation in getting ACH funds back can be a delicate balancing act. Some banks take a decidedly rigid stance -- We need the WSUPP before we can pursue your refund, Customer. Others take a more liberal stance -- We'll give you back your money, Customer, right away, and we'll worry about the paperwork later. Regulation E suggests that the liberal approach is appropriate; bottom-line watchers are in favor of the rigid approach, which may bend and ignore Reg. E occasionally.

Somewhere in the middle is the institution that complies with the Regulation, but finesses its communication with the customer in such a way as to encourage cooperation in getting the WSUPP completed.

"We're happy to look into this transaction, Customer, and get you back your money quickly. We'd like your help in getting our money back from the people who charged your account. Can you sign a statement that says the transaction was unauthorized, please? We can have it ready for you at our __________ office. Better yet, if you have a fax number, we can get the form to you so you could sign it and fax it right back to us. If we get the signed form back quickly, we can move ahead on getting those funds back right away."
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#620030 - 10/03/06 03:50 PM Re: WSUPP for ACH Disputes
Otis Offline
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Otis
Joined: Dec 2005
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MN
I'm currently in an ACH dispute with the presenter of a bogus POS transaction. Upon receiving my polite, written statement and request, my bank gave me provisional credit and ordered a new debit card for me. I didn't see their WSUPP; perhaps they're filling it out. In a letter, they said it could take as much as 3-4 months to make the settlement final. Should that fall through, I suppose I would just sue the presenter in small claims...if I could ever find him/her/it.

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#620031 - 10/04/06 05:02 PM Re: WSUPP for ACH Disputes
Comply 101 Offline
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Comply 101
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Posts: 695
I would be careful. What if the customer disputed a insurance ACH debit but would not sign the form. The bank sends the insurance debit back and the customer later dies. His/her estate will sue the bank for canceling the insurance without any written authorization. I believe this is one reason why NACHA recommends the form to be completed by customer.
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#620032 - 10/16/06 08:41 PM Re: WSUPP for ACH Disputes
John Burnett Offline
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John Burnett
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Posts: 38,726
Cape Cod
Otis -- POS debit card transactions do not run through the ACH system. Accordingly, there would not be a WSUPP prepared for your signature. The written statement you kindly provided would be enough.
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