We are seeing an increasing number of drafts come through on savings accounts, including a few fraudulent items which we were not able to identify as fraudulent within 24 hours. In our depositor's agreement we state that "We may refuse any withdrawal or transfer request which you attempt on forms not approved by us, by any method we do not specifically permit..." Operationally, we have discovered a way to identify the drafts drawn on savings accounts the day they come in. Can we legally say that we do not accept drafts on savings accounts and return any that come in?
What are the rules for a paper draft initiated by a telephone request? We had a customer on 3/7 approve a draft for 3/31 and it was debited on 3/9. We returned it unauthorized per the customer. It is not an ACH TEL so what are the rules on this?
What is the retention requirement for cashier's check logs for customer identification?
Reg D and MMKT withdrawal limitations. We have a customer that has a large money market account they deposit into regularly by us crediting the account when we originate an ACH file for them. We receive a number of ACH returns where these drafts are NSF at other banks and we charge them back to our customer. We probably charge 10 or 12 a month back to them. Are these exempt from counting towards the transaction limits? This customer would like to use the Internet banking system we have to move money to another account in our bank. Will these count towards the transaction limits?
Question: Our credit union is getting a substantial amount of returned mail from membership stating that the member is no longer at the last known mailing address.
Our customer has an account at another bank that was charged with unauthorized paper drafts. The customer reported the entries to the bank in a timely manner. The bank states they will credit the account once a police report has been provided (which is pending). Is there a time limit in which the bank must provide provisional credit (similar to the one required by Reg E for electronic items)? I find no reference to a time frame in the UCC or any other resource.
Dealing With Unauthorized Drafts:
Fed Proposes Reg. CC Solution
John S. Burnett, Associate Editor, BankersOnline.com
What is the time frame to return a paper draft unauthorized on a commercial account?
If a company creates a paper check on one of our depositor's accounts, saying it was authorized by our depositor, and our depositor says it was not authorized, how do we handle the return of this item? It is now late because our depositor didn't know about it until the check came in her statement.