Is there a time limitation on correcting encoding errors on customer accounts?
We have typical check adjustment that was encoded for a 100.00 too much. This check debited our customers account for 100.00 too much. For a few weeks now we have been trying to do an adjustment with BOA. They keep denying our adjustment and the reason is because their customer is NSF. This is something they are allowed to do?
The Federal Reserve will handle encoding errors brought to their attention within six months of the cash letter date. After that, the reconciliation is "bank to bank" and must take place within one year of the cash letter date. Where is it written that a bank has one year to initiate a bank to bank adjustment of the cash letter date?
Has there been a change in handling a check when the written and numeric amount differ? During a discussion it was stated there is no longer guidance to determine the correct amount. The employee accepting the check should accept the numeric amount as the correct amount. The rationale is because the checks are read electronically.
Our financial institution received a letter from another financial institution requesting a credit for an encoding error that happened in October, 2007. Back in 2007, we contacted this institution, and they let us know that they did not need the credit. Now, in 2009, we have already written that amount off. What regulation and section governs the timeframe of collection of check adjustments? I'm pretty sure it is a year, but I want to know exactly where it says that.
According to Reg CC, cashier’s checks are required to have next day availability. Is there an exception if we believe the cashier’s check is a fraud?
We have printed on the back of our statements "please examine immediately and report if incorrect. If no reply is received within 14 days, the account will be considered correct." My question is, can we do that? I know there are different time frames depending on the type of transaction, but this time frame seems shortened. What are the compliance issues with this statement? Should it be changed? We send out full Reg E disclosures yearly.
On 6-2-05, we encoded a $10,000 check for $100,000. Now the Payor Bank is requesting the $90,000 that was paid from their customer's account. What is the time limit for this breach of encoding warranty?
If our bank has received a legitimate adjustment claim from the Fed for an encoding error we've made, are we required to put our customer into overdraft (if sufficient funds are not still in the account) to credit the Fed?
Encoding Error Proves Costly