09/20/2004
Our bank customer got "phished" and his Internet authorizations were compromised. Thieves used his password to access our website and the customer’s account info and they initiated instructions for the bank to issue checks (probably to an accomplice). These checks are vendor checks. The payee cashes them at any check cashing business. When the customers realizes the suspicious activity and notifies bank, we place stop payment orders on the vendor checks but only after some have been cashed by the payee/accomplice. The check cashing business made a demand on the bank for the funds. Who bears the loss and is there a UCC or CFR provision that addresses this issue?
09/06/2004
I am currently printing verbiage on the face of checks that I write specifically stating that the payee is NOT authorized to initiate an EFT for payment of a check and the check may not be electronically converted. I am also stating on the face of the check, under the check number, that the serial number is not valid for electronic check conversion. After studying 12 CFR 205 (FRB Regulation E) it seems as though this is the my only chance as a consumer to prevent this practice. What is your opinion? Is the front or back of a check the correct place to put any authorization or conditional information?
08/02/2004
How will float days be determined on imaged items?
08/02/2004
How will float days be determined on imaged items?
06/07/2004
Do return (chargeback) ACH transactions have to be broken down individually (online or on consumer statements) or can the multiple returns be sent back to the originating deposit system and on the customer statement as an aggregate (total of all returns) return amount?Does Reg E cover commercial accounts or only consumer?
03/01/2004
If NACHA's 60 day rule only applies to consumer accounts for EFT unauthorized returns, how do we proceed on business accounts?
01/05/2004
With Check 21 signed into law, is it now futile for a merchant to require a signature on the back of a customer's check accepted at the point of sale (for bounce/collections purposes if their check bounces)? What effect does this have on Reg E?
12/01/2003
Do outgoing wire transfers count in the Reg D limits? If so, are they included in the 3 limit or the 6 limit?
11/03/2003
What are other banks telling their customers about electronic check conversion? There has been no mention of it in the media and customers are coming back to us angry that "we" are destroying their checks and it is "our" fault. We have no idea what the vendors (American Express; Wal-Mart, etc.) are doing with their copies/images of the checks and customers are expecting us to know. Have standards been issued for the vendors as to how long or what they have to do with the check before it is electronified?
11/03/2003
If a customer performs transfers between his MMDA and his checking accounts using the bank's "on-line banking" product and exceeds the preauthorized limit of 6 transactions, would he be considered in violation of the reg? I would think that because he is performing the transaction himself, it would not exceed the limit (similar to using an ATM card at an ATM machine). Have you heard anything from the regulators about this?