ACH fraud continues to increase and the losses to credit unions have been staggering. Your credit union’s responsibilities and liabilities for ACH fraud vary depending on whether it is the Originating Depository Financial Institution (ODFI) or the Receiving Depository Financial Institution (RDFI) and whether the transaction involved a consumer or business account.
Did you know that the ODFI can still be liable for an unauthorized ACH withdrawal long after the NACHA return deadlines? Although the RDFI can’t recover funds through the NACHA network by means of return entries after the return deadline, the RDFI can obtain reimbursement from the ODFI under a breach of warranty theory through other legal methods. This webinar will explain how your credit union should respond in an ACH fraud situation and the related responsibilities and liabilities. Learn how to legally recover unauthorized ACH withdrawals after the NACHA return deadlines.
- Differences between ODFIs and RDFIs
- Your institution’s responsibilities and liabilities when acting as the ODFI versus the RDFI
- List of return deadlines for consumer and corporate accounts under the NACHA rules
- How to bring a breach of warranty claim against the ODFI
- When Reg E conflicts with the NACHA rules and how to handle it
- Mitigating the risk of loss
- TAKE-AWAY TOOLKIT
- NCUA Examiner’s Guide – Automated Clearing House (ACH)
- NACHA Bulletin relating to breach of warranty claims after return deadlines
- Employee training log
- Quiz you can administer to measure staff learning and a separate answer key
WHO SHOULD ATTEND?
This informative session will benefit all staff involved on the deposit side, including loan operations staff and officers, tellers, service representatives, compliance officers, attorneys, and managers.
SPEAKER: Elizabeth Fast, Spencer Fane LLP
Elizabeth Fast is a partner with Spencer Fane Britt & Browne LLP where she specializes in the representation of financial institutions. Elizabeth is the head of the firm’s training division. She received her law degree from the University of Kansas and her undergraduate degree from Pittsburg State University. In addition, she has a Master of Business Administration degree and she is a Certified Public Accountant. Before joining Spencer Fane, she was General Counsel, Senior Vice President, and Corporate Secretary of a $9 billion bank with more than 130 branches, where she managed all legal, regulatory, and compliance functions. She is a member of the Missouri State Banking Board by appointment of the Governor.