I recently attended a webex that was discussing ACH Stop Payments and they stated that a "Forever" ACH Stop Payment may be removed from our computer system earlier (2 yrs, 3yrs, 5yrs or whatever is decided by the institution) if it is bogging down your system. Is this correct?
We return a check for stop payment and then remove the stop pay order on the account. The check is re-presented and clears. What rights do we have to not accept? Is it possible for a stop pay item to be re-presented in the image clearing environment?
I am questioning the below scenario. I have heard from more than one of my business customers that this is common practice at other financial institutions: A large business customer, who just so happens to have his payroll account at another financial institution, wants his employees (non-customers) to be able to cash their payroll checks (drawn on another financial institution) at your bank. Is this something that is done commonly? Does the bank have any legal recourse in the event a payroll check is returned? Could we exercise a right of offset from the accounts the business customer does have with the bank even though it’s not the account the check is drawn on?
How should a customer write a check to the bank if they wish to purchase money orders? Are money orders consider the same as cashier's checks?
We had some internal auditors making notes regarding our stop payments. I have been asked as head of operations to review our stop payments. Auditors are requesting that if an oral stop payment is returned as such within the fourteen day period, that we should still try to get the customer's signature. Is that necessary?
With regard to ACH debits to a customer's account, does the RDFI (Receiving Depository Financial Inst.) have the right of offset for ACH debits to a customer's account? Can the RDFI return ACH withdrawals which have already posted to a customer's account without the customer's consent and without an affidavit of unauthorized ACH form (return code R10), only because the customer's account is showing a negative balance?
Is there a regulation that requires customers to come into the bank and sign a stop payment that was done over the telephone?
What is the reason stop payment orders are only valid for six months? May a bank elect to make them permanent?
I need some clarification on paper and ACH stop payments.1. If a stop payment is placed on the customer’s account and the paper item is presented for payment, would the stop payment be taken off the account once it is presented or does the stop payment stay on the account for the full six months no matter how many times the item gets presented?2. If an ACH stop payment is placed on a customer’s account what rules apply? 3. Is the stop payment for an ACH transaction good for a one time presentment or how long is the stop payment left on the account? 4. Are web and PPD item stop payments left on the account indefinitely or unless the customer withdraws the order?
A client made a deposit of three checks on July 31st. The company who wrote the checks filed for bankruptcy on August 10th. Two of these checks have been returned three weeks later with stop payments placed on them. We've debited the client's account. Is this right? I thought checks should be returned within one day after presentment per Reg CC. Should those checks have been returned?