I work for an Oklahoma bank that is trying to better serve their customers in regards to direct deposit and direct payments. How do other finacial institutions handle account closures and the reopening of a new account when there are ACH credits and debits? Do most make it the responsiblity of the customer to notify those companies or does the financial institution offer to notify the companies via NOC on behalf of the customer (with writtten request).
What are the ramifications of offering such a service? Will we need to update our disclosures?
Any help would be appriciated.

I will tell you that most companies, banks, etc don't bother even looking at NOI's sent out. I can tell you that because we wouldn't have as many repeats as we do on our end. The banks we work with have their customers notify all of their auto-pay/deposit/etc. As I said, we send out NOIs and they don't seem to do anything with them.

Our system has remarks that tell us what to do with those items. We do post those... sometimes longer than we should. We also notify the officer to notify their customer if the changes haven't taken place in a timely manner.

I have to love the customer's who complain that they don't have their paycheck deposited on such and such a date each week and yet have failed to notify the company about the changes. In order to keep them happy, you deposit the funds (a day later due to the reject) and call them again saying "please let your employer know"..... only to have it happen next week.

Although I agree with the above posters about how things are done currently......that's how we've been doing them.....I think the big question for Anica is about regulations. I've not seen anything in the way of regulations and am also wondering what the legal ramifications would be if we (I work with Anica) began a service such as this. Although I strongly believe that the onus needs to be on the customer to get this done when an account is closed/moved, etc., I've also seen many cases where it would be sooooo much easier if we just automatically took care of it by resubmitting a form or whatever. It's a good idea, I think, but I just can't find anything that really tells me what we'd be up against. Any additional comments would be greatly appreciated!!!

Thanks, all.....hope your weekend is/was a good one!

Jeremy

If you are using the PEP+ system for ACH processing, you can set up an ACM to automatically swap inbound ACH DRs and CRs from known Originators from the old account number to the new one, and to also automatically generate an NOC for each swap.