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Delay in Responding to Encoding Error Adjustment

05/03/2004

We misencoded an item in March '03. The following day the error was found and an adjustment through the Fed was made. The Fed adjusted the item two days after the initial encoding of the item. The bank on which the item was drawn failed to adjust their customer's account and the account was closed approximately thirty days after the adjustment was presented to them. They now want us to cover their loss. Are we liable for compensating them for their failure to act promptly?

Training Page: Spotlight On?Claims

12/01/2003

Transactions that go through without any problems make up the bulk of the day's work. But every now and then comes a 'glitch' in the unusual item. What do you do with it?

They're With Us

12/01/2003

Is it my imagination, or is the financial industry becoming more mercenary and considerably more paranoid than it used to be?

Customers who encode their own checks

06/30/2003

We have a few customers who pre-encode their checks before depositing with us. We'd like to ask them to sign an agreement whereby we require them to perform quality work and they are liable for any encoding errors should we have a loss due to the Presentment Warranty for encoded amount. Do you know of any banks with such agreements? Do you have any suggest or a reference to a source for appropriate language so we could create our own? Are we able to pass on our liability to the customer in these cases?

Timely Return Of Checks With Encoding Errors

11/04/2002

Where I can find the time limit for returning a check with an encoding error? We just received a return item with an encoding error that occurred 8 months ago. I believe there is time limit for encoding error returns, but I have looked everywhere and have found nothing.

Encoding & Retention Warranties

05/06/2002

We have a commercial customer whose check was encoded for $300.00 and should have been $3,000.00. This was an inbound item, so the encoding error took place by the BOFD. We were not made aware of the error until a year and 4 months after this item was deposited. At that time we felt the item was too old, and did not send through an adjustment. An additional year has passed, and this item is still being pursued. Can you advise if there is a statute of limitations on filing for an encoding error?

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HMDA/Section 1071 Question

12/08/2024

I have a question about a SBDC exclusion. I know that the exclusions reference that HMDA reportable transactions are excluded. We are a non HMDA bank so what we initially thought based on the prior SBDC trainings I have been to and the research that we have done is that we would exclude transactions that would be HMDA reportable if we were a HMDA reportable bank. However, I recently went to a Forvis compliance conference and what I heard there caused some confusion for me in regards to that. We are a non HMDA bank due to us not having a branch in an MSA and not because of our loan volume. So their interpretation was that HMDA transactions would not be excluded for us since we don’t have a bank in an MSA and since our loan volume wouldn’t exclude us from HMDA if we were in an MSA. I can see following the citations how they derived to that answer but this is the first time I had heard it interpreted that way. Can you give any guidance or clarification on this?”

Reg E and mobile payments

12/01/2024

Our customer received a call telling them their CashApp account was compromised, and they needed to verify the password. After they did this there were several authorized CashApp transactions. Can we tell the customer they have to resolve the issue with CashApp?

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