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ACH Return for Unauthorized Debit

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Question: 
Can a customer initiate an ACH Return for unauthorized debit from a closed bank account?
Answer: 

A consumer does not lose their Regulation E protection rights just because the account is closed. If the consumer claims that there is an electronic funds transfer error, you have an obligation to investigate it. Operationally you will have to decide how to handle providing provisional/final credit as applicable.

First published on 07/25/2021

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