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ATM Presentment & Processing

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Question: 
Are there any regulations that speak to the following situation in regards to presentment and processing? ATM deposit was made on Jan 30, 2008 thru a deposit automation ATM. There were server issues that prevented the check image from being received for processing however the member received immediate credit and had access to the funds. The outage that occurred from the original technical problem was not resolved until April 21, 2008. The original check was submitted for processing because it was a negotiable item and not more than 6 months old. The item was returned April 24, 2008 as NSF. Because there was a 2 month timeframe between deposit and check processing the member does not feel they should be responsible for the returned check. We have attempted to collect the NSF item on behalf of the member with no success.
Answer: 

Your credit union member has a legitimate gripe. If the check had been lost or delayed in transit, as sometimes happens, the delay in presenting and returning the check would be at the member's risk, and he or she would be accountable for the bounced check.

However, at least on the face of things, your credit union ought to have detected the problem when your books should have gone out of balance back in early February. You should have had controls in place to verify that an image of the paper item had been received for processing as soon as you retrieved the paper item from your ATM, and you ought to have retrieved the item a lot sooner than you apparently did.

A dogged attorney might succeed in arguing your case. The question is whether or not the credit union wants to pursue the case.

First published on BankersOnline.com 7/07/08

First published on 07/07/2008

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