Skip to content

No written notice

Our customer called stating 5 recent ACH debits are “fraud.” We’ve asked for a WSUD but haven’t received it yet, and 2 of the transactions are nearing the deadline for return. Can we return based on the customer’s verbal claim? If we don’t receive the WSUD, can we deny the claim?

The ACH Rules require a WSUD before you return the transaction. Under Regulation E, (§ 1005.6(b)(5) a consumer is NOT required to supply the WSUD, their verbal notice is sufficient. Likewise, under §1005.11(b)(2), a bank may request a written confirmation of a verbal claim but cannot deny the claim or delay its investigation to resolve the error pending receipt. The request for written confirmation of a verbal claim only affects provisional credit, so your bank must begin its investigation upon receipt of the verbal claim and resolve timely even without the WSUD. The banks return deadline in ACH has no bearing on the consumer’s rights under Regulation E. You must still investigate and resolve this issue.
Learn more about Rayleen Pirnie’s webinar
ACH Fraud Investigations and Mitigation

First published on 06/30/2019

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics