Re-route an ACH Credit: Closed Account

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Question:

Can we re-route an ACH credit coming into a closed account to the customer’s loan account if their DDA is closed?

Answer:

No. Your deposit contract with the customer terminated when the account was closed. Any setoff rights in your deposit contract similarly terminated. The same answer applies to charged off checking accounts, past due safe deposit box rent, etc. Your only option is to return the ACH account closed.