|
Q.) Is a Financial Institution required to have customers sign a Stop Payment Request form?
A.) According to the Nacha Operating Rules, a Financial Institution can allow for oral or written notification of a stop payment order. The rules do not require a Stop Payment Request to be signed. Note that the RDFI may require written confirmation that the Receiver has revoked authorization with the Originator. The RDFI may also require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. An institution that requires written confirmation shall inform the consumer of the requirement and provide the address where confirmation must be sent when the consumer gives the oral notification.
Source: 2022 Nacha Operating Rules, Subsection 3.7.1.3; Reg E, 1005.10(c)2: (2) Written confirmation.
Have a question for TCHPA? Call 800-875-2242 (choose option 3) or email education.services@theclearinghouse.org.
The information contained herein has been prepared for general informational purposes only and is not offered as and does not constitute legal advice. You should consult with your legal counsel regarding the legal, regulatory and payments industry rule requirements that apply to specific transaction scenarios.
|
