If a customer makes a payment to reconcile an overdraft on a DDA, is there any specific regulation stating when the payment is considered received, or for what date it should be effective dated? This question applies specifically to DDAs without overdraft credit lines. Thanks.

I'm curious as to what difference it would make? It's not like there are additional late fees or interest charges. I would assume that you would post it to your recovery account the day you received it.

Good point, and one I keep running into. I'm auditing our DDA recoveries department. Suppose that it's the final day before the overdrawn account is charged off, and a payment comes in. But instead of being stamped as received on the day it is reveived by the bank, it is not stamped as received until two days later, when it actually makes it to the recoveries department. Unlikely, yes, but possible. Just covering all my bases (I hope). On top of that, difference or not, the audit is for compliance with federal requirements - that's my real goal.

the audit is for compliance with federal requirements - that's my real goal.

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What requirements? It appears that this is strictly an internal issue with each bank deciding how to handle OD collections, including not pursuing collection at all.

There are none - otherwise why would I have indicated what difference does it make? The only governing principals would GAAP, depending on whether the account is or is not charged-off at the time of posting.

As noted above, there are none. Normally, one starts with a law or regulation as a reason to audit 'something' and if there are none, one starts with an internal control or policy - so what you are looking for is something internal that impacts an operational event.