Most Popular Compliance Content
Is there any reason to keep offering NOW accounts?
12/24/2023
Bank management wants to simplify our account lineup and get rid of NOW accounts. I thought these accounts were the only way we could pay interest on certain checking accounts. Are we shooting ourselves in the foot by getting rid of them?
Recalling Bank Transfers
12/17/2023
How do we recall a bank-to-bank transfer that was unauthorized? We are the ODFI.
Must we provide online deposit account opening disclosures on our website?
12/17/2023
We allow customers to open deposit accounts online. We’d prefer to keep disclosures (especially our rate and fee sheets) off our website, so that the competition can’t see them. Must we provide TISA disclosures up front, or can we mail them later? I seem to remember Reg DD allows us to send disclosures up to 10 days later when the customer isn’t at the bank.
Credit and Recredit After ACH Funds Recovered
12/17/2023
How should a credit union as the Receiving Depository Financial Institution (RDFI) handle a situation when the credit union recovers unauthorized ACH debits from the OriginatingDFI (ODFI) through the breach of warranty process? An example may help to clarify the question. A consumer-member disputes a series of ACH debits posted their account over the last several months as unauthorized, but the member is late in providing notice. The credit union recredits the member for the initial unauthorized ACH debits plus those that occur within 60 days of the statement being made on which the first unauthorized debit appear. The member is liable for the unauthorized debits after the 60 days until notice is provided to the credit union. The credit union is able to return the most recent unauthorized debits that occur in the last 60 days. In an attempt to recover the remaining funds, the credit union sends a notice to the ODFI requesting the member’s authorization and if the ODFI is unable provide the authorization, requests permission to initiate a late return. The ODFI is unable to provide the authorization, so it grants permission to process a late return. The credit union has now recovered the full amount of the unauthorized ACH debits claimed by the member. Can the credit union retain the amount that it recredited to the member (i.e., the credit union’s liability)? For the remaining funds recovered, should the credit union recredit the member? It seems to me that the credit union should recredit the member based on the concept of unjust enrichment.
Delayed Large Item Hold
12/10/2023
It was discovered two days after initial deposit date that a teller did not place a large item exception hold requested by the branch manager. Can we place a hold for the dollar amount that would have been held for 7 days from the date of deposit and mail the customer the form using large item exception hold and note the reason for the delay on the hold notice? What is a best practice for this type of situation?