RDFIs Right of Offset

Answered by:

Question:

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?

Answer:

No, the RDFI cannot return ACH debits to an account past its deadline for normal returns (available to the ODFI by the opening of business on the second banking day following the entries' Settlement Dates), except under the circumstances that permit adjustments for unauthorized transactions and missed stop payments (consumer accounts).

First published on BankersOnline.com 3/22/10