Answer:
If the account remains open with a negative balance (even if you've charged the balance off on a bookkeeping entry), it's OK to accept the ACH credit. But if the account is closed, it's closed, and you have no legal contractual basis for accepting the direct deposit. In such cases, it should be returned. It doesn't matter where the direct deposits originate.
First published on BankersOnline.com 11/26/12