Mon, May 11, 2015
Washington, District Of Columbia
Financial institutions providing incorrect automated clearing house (ACH) enrollment information will be held liable by the U.S. Department of the Treasury's Fiscal Service Bureau.
The process has been detailed in a section of the Treasury's Greenbook, which serves as a guide for financial institutions receiving and sending federal government ACH payments.
According to the update , if Fiscal Service determines that a recipient's ACH payment was misdirected because an institution submitted incorrect banking information as part of an enrollment, or because the payment was misdirected because of a fraudulent enrollment, a notice of direct debit will be submitted to the Originating Depository Financial Institution (ODFI).
The notice will specify the date and method of the erroneous enrollment or ACH change, and the list of payments and payment amounts for which the ODFI is liable. Upon receipt of the notice, the ODFI has 30 days to return the full amount of the payment via ACH, using the R06 return reason code.
If the full amount the ODFI is liable for is not available for return, the Fiscal Service will debit the institution's Federal Reserve account.
ODFIs are permitted to respond in protest to a notice within 30 days and must include documentation supporting the claim.