Answer:
Yes, assuming that you are dealing with benefit payments credited to the account by direct deposit. You can find the rule in either of two places.
1. 31 CFR Part 210 (Federal Government Participation in the Automated Clearing House), section 210.4(c)(3):
(c) Termination and revocation of authorizations. An authorization shall remain valid until it is terminated or revoked by:
(3) The closing of the recipient's account at the RDFI by the recipient or by the RDFI. With respect to a recipient of benefit payments, if an RDFI closes an account to which benefit payments currently are being sent, it shall provide 30 calendar days written notice to the recipient prior to closing the account, except in cases of fraud; ...., or
2. The Treasury Department's Green Book, in the Enrollment section, page 1-57 (which interprets 31 CFR Part 210).
There is no requirement if the direct deposit items from the Treasury are not benefit payments (for example, tax refunds) or if benefit payments by check are deposited to the account by the customer. The crux of the matter is giving the customer time to make other arrangements for direct deposited benefits.
First published on BankersOnline.com 9/06/10
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