I am in [state name here] and we currently accept oral stop payment orders, BUT there is one exception... we do NOT accept any oral orders for any type of insurance payment. How can I find out if this is out of compliance?
Our customer, upon reviewing his statement, found a draft that he had not authorized. He brought the draft to the bank to be returned as unauthorized. We got stuck with a late return. What time frame do we have to send back a "Telephone Authorization Draft" if it is fraudulent?
Does a paper draft which does not have the owner's signature fall under Reg E or a similar reg for the 60-day rule? Can the draft be returned within 60 days?
Our credit union was previously significantly hit with fraudulent Visa drafts. It appeared that the Visa drafts were stolen from the postal courier. In an effort to be proactive, we have opted to pull the signature cards and verify against the signature on the drafts presented to us for payment. If the signature is not a quite match (perhaps old signature card on file) we place a call to the cardholder. Of course the dollar amount and the payee are reviewed as well. In one instance, we were not able to confirm with the cardholder after leaving numerous phone messages. We returned the draft marked Refer to Maker on the second day after the draft was presented to us for payment.The merchant who accepted the draft is now attempting to get restitution from us for fees incurred from their bank to the tune of $180 due to their account becoming overdrawn. As far as this scenario is concerned, specifically which regulations should we provide the merchant in order to support our position?
I have a question that involves point of sale transactions (POS) on a statement savings or NOW checking account; can we charge a fee for the following scenario?A customer has a balance in a statement savings or checking account of $100.00. They use their ATM/Master Card Debit to make a purchase of $100.00. The same day they make a withdrawal over the counter for $50.00, the preauthorized debit comes through the next day and the account is overdrawn by $50.00.The questions again are: <ol><li>Can we charge an NSF fee for the point of sale transaction which has now put their account in the negative? <li>We cannot return a POS once it has been pre-authorized, right? <li>And, what disclosure must we provide to the existing customers as well as new ones if we are allowed to charge a fee? <li>What is the maximum fee we can charge, if any?</ol>
I have read a letter by a bonding company that states an electronic debit which is alleged pre-authorized may be reversed in 60 days if the bank's customer has not actually pre-authorized the charge to the bank customer's account. A paper alleged pre-authorized draft or debit is subject to the same rules as a check and, if not authorized, will be a loss to the bank after the midnight deadline. They say when the bank does not have a signed authorization in the bank which authorizes the bank to pay a debit or draft from that particular firm, they recommend the bank refuse payment and return the item as unauthorized. Nowadays, we rarely get signed authorizations. Should we, and if we don't have one, return the item?
What are the rules for paper drafts on customers? When we filed checks we were able to verify authorization to pay or not pay. Now, with imaging and telephone authorizations, this isn't possible. Will the bank lose the money? How can this be avoided?
Question: Can you shed light on the exposures associated with drafts?
Up until just a short time ago, employees of First National Bank of Chicago who were requested to issue foreign currency checks had to do so with a typewriter, and a lot of specific instructions.