During a recent review of deposits it was noted that a customer keyed their ATM deposit amount incorrectly, which shorted the deposit amount by $2. The reconciliation process completed in Items Processing caught the error but did not correct the customer's deposit amount. According to Items Processing Management any errors less than $5 are not corrected and this is any industry practice.
Is this really an industry practice? Additionally, isn't there a regulation that what address this type of situation? It just doesn't seem right.

Any insight would be appreciated!

Of course it's an industry practice; banks never steal large amounts of money from their customers.

We use less than $1.

$5 is probably not out of the question. We ran any difference $1 or less to an over or short account in the 80's. If it was more than $1 - we ran a correction to the account.

If a customer ever brought the issue up - we just gave them their quarter or fifty cents back.

Many banks have a de minimus threshhold where adjustments are not made. There is no industry standard amount, however, if it is not disclosed in the Deposit Account Agreement, it might be considered unfair or deceptive.

Al

Dang it Al

Now you gave every examiner that reads these forums something else to dig for.............

We over-posted a check by 4 cents and the customer came to the bank to complain. Considering the paperwork involved, I just took 4 cents out of my pocket and gave it to him. The cashier said it was not my finest hour.

Even today, it still makes sense to me.

We write off any adjustments under $5. if the customer requests the adjustment we will make it for them. Just a note, the fed will not fix encoding errors under $25.01 so we sometimes have to write off adjustments up to this amount also.

"Industry Standard" I was also given this reason recently for some other action taken by an employee. I would like to know who the person is that determines these standards and where I can find the book that lists them all so that I can show the examiners when they come in. Then we could follow them all without having to worry about what the examiners say!

Then we could follow them all without having to worry about what the examiners say!

I wouldn't waste the money on such a book. Many industry standards have since been turned into UDAAPs.