Making payments move faster
12/31/2023
What changes were there for payments processing?
John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He moved to Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, and as clerk of the bank's holding company.
He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He is a regular presenter and participant in BOL Conferences events.
You may contact John via email at jburnett@bankersonline.com.
12/31/2023
What changes were there for payments processing?
12/24/2023
What’s next for ACH growth?
12/17/2023
How should a credit union as the Receiving Depository Financial Institution (RDFI) handle a situation when the credit union recovers unauthorized ACH debits from the OriginatingDFI (ODFI) through the breach of warranty process? An example may help to clarify the question. A consumer-member disputes a series of ACH debits posted their account over the last several months as unauthorized, but the member is late in providing notice. The credit union recredits the member for the initial unauthorized ACH debits plus those that occur within 60 days of the statement being made on which the first unauthorized debit appear. The member is liable for the unauthorized debits after the 60 days until notice is provided to the credit union. The credit union is able to return the most recent unauthorized debits that occur in the last 60 days. In an attempt to recover the remaining funds, the credit union sends a notice to the ODFI requesting the member’s authorization and if the ODFI is unable provide the authorization, requests permission to initiate a late return. The ODFI is unable to provide the authorization, so it grants permission to process a late return. The credit union has now recovered the full amount of the unauthorized ACH debits claimed by the member. Can the credit union retain the amount that it recredited to the member (i.e., the credit union’s liability)? For the remaining funds recovered, should the credit union recredit the member? It seems to me that the credit union should recredit the member based on the concept of unjust enrichment.
12/10/2023
It was discovered two days after initial deposit date that a teller did not place a large item exception hold requested by the branch manager. Can we place a hold for the dollar amount that would have been held for 7 days from the date of deposit and mail the customer the form using large item exception hold and note the reason for the delay on the hold notice? What is a best practice for this type of situation?
12/03/2023
Can a check payable to "JANE DOE Life Estate Tenant u/t/w of John Doe, Deceased and Child 1, Child 2 & Grandchild 1, Remaindermen" be deposited into the life tenant's individual account or a multiple party account owned by all named parties?
11/26/2023
Currently, the bank I am employed by uses commercial loan applications. In my prior work lives, the banks never had a specific cmmercial loan application. Are they required? I realize some compliance related items are collected on them; but believe this could be done in another manner. Thoughts on this topic and why you would recommend keeping them or eliminating them.
11/05/2023
My bank wants to make an indemnity claim against a bank that accepted a mobile deposit of a $1,200 check that we accepted in paper form three days later. We learned from the paying bank that the mobile deposited check was indorsed with only the payee’s signature (which is all we got on the paper check when it was deposited with us. We charged the check back to our customer’s account, creating a $500 overdraft, and we have learned our customer has left the country. Can we recover the full amount of the check?
10/29/2023
We just received a $750 check that was returned to us unpaid as a duplicate presentment. There is no information on the check to indicate where it had been accepted for deposit before we took it. How can I get that information, which I will need if we have to make an indemnity claim against that other bank.
10/29/2023
If Bank A accepts a mobile deposit that is endorsed with "For Mobile Deposit Only" and that same check is then physically deposited at Bank B with that same endorsement, what bank is liable for the loss?
10/29/2023
If the source of funds for an ACH deposit appear tainted or fraudulently obtained, can the funds be legally held for return to the ODFI?