NACHA Proposal on Stop Payment Issues

CUNA
May 28, 2008 | COMMENTS

NACHA is proposing amendments to its rules on stop payment authorizations to re-align with the Federal Reserve Board's official staff commentary on stop payments of pre-authorized electronic debits.

The proposed amendments would eliminate the six-month time period after which a stop payment order lapses.

The number of entries to which a stop payment order would apply would be expanded to remain in effect until all entries instructed by the Receiver are stopped.

The Receiving Depository Financial Institution (RDFI) would be permitted to require a copy of the Receiver's correspondence revoking authorization directly with the Originator.

NACHA is proposing an effective date of September 18, 2009.

Please submit your comments to CUNA by June 11, 2008. Comments are due to the NACHA by June 27, 2008.

Please feel free to send your comments to CUNA SVP & Deputy General Counsel Mary Dunn at mdunn@cuna.com or to Assistant General Counsel Lilly Thomas at lthomas@cuna.com ; or mail them to Lilly c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, D.C. 20004. Click here for a copy of this Request for Comment.

> Read the rest of the comment call and questions here at cuna.org