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#23103 - 07/09/02 07:25 PM Unauthorized Business EFTs
NHBankGuy Offline
Junior Member
NHBankGuy
Joined: Jan 2002
Posts: 35
Manchester, NH
A question has come to me regarding unauthorized business EFTs (Reg E doesn't apply) and I'd like to get a sampling of how other institutions handle them.

From my reading a NACHA rules, an institution has only one day to return an unauthorized EFT to a business account. More often than not, it will take the business longer than that to notice the transaction.

How do you handle it if a commercial customer disputes an EFT after the NACHA return deadline? Does your institution you address this potential situation in the disclosures that are given at account opening?

Thanks for your help with this question...
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General Discussion
#23104 - 07/09/02 09:48 PM Re: Unauthorized Business EFTs
BrendaC Offline
Power Poster
BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
We do not address this issue at account opening. If we tried to address every law and rule that could ever impact a transaction, customers would need a wheelbarrow to take disclosures home. We do include a reference to EFT transactions being governed by NACHA rules in our customer agreement.

This is also one of the major reasons we need to check our new account disclosure practices and make sure our CSRs are not giving business customers a Reg E disclosure. We don't want to disclose a 60-day rule instead of a 24-hour rule.
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#23105 - 07/10/02 08:27 PM Re: Unauthorized Business EFTs
prj Offline
100 Club
prj
Joined: Oct 2001
Posts: 100
Chaska, MN
NACHA has a special return code for these "late" CTX/CCD transactions. It's R31. The corporate entity can contact the originator of the transaction, and try to work it out by phone. If the originator says "ok, send it back", the transaction can be returned using this reason code.

It means the corporate customer has to do a little work, but it's better than nothing!
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Pam The comments above are my own thoughts an opinions, not those of my employer.

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#23106 - 07/11/02 04:24 AM Re: Unauthorized Business EFTs
Anonymous
Unregistered

We also have a form letter with blank areas to fill in the appropriate information and the customer has to sign, date the form.
This is protection for the bank that we didn't take it upon ourself to return item.
Thanks

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