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2024 Quarterly Review Part 4 – ACH Breach of Warranty Deep Dive

Description

Event Details*
Thursday, November 14, 2024
10:00 - 11:30 am ET
Webinar; 1.8 AAP/APRP CEU Eligible
Level: Intermediate

Event Registration**
Member Price: $150.00
Non-Member Price: Members Only
**Price listed is per person and does NOT allow additional registrations for free.


In 2021, Nacha implemented the “Limitations on Breach of Warranty claims” for unauthorized ACH debit Entries. One basic principle of the ACH Rules is that the Originating Depository Financial Institution (ODFI) assumes responsibility for many warranties and indemnifications to the Receiving Depository Financial Institution (RDFI) in a transaction. One of those warranties is that an ACH debit is properly authorized by the Receiver.

Unfortunately, in today’s fraud environment, compromised account information is common, resulting in transactions that were not authorized by the true Receiver of the account. Once the account owner, consumer or corporate, recognizes the unauthorized activity and reports it to their institution, the RDFI may be outside their in-network return timeframe for the Standard Entry Class (SEC) used in the debit.

That’s where the ACH Breach of Warranty can come into play; RDFIs have an out of network option to recover funds from the ODFI for unauthorized ACH debits.

Join us to explore everything from ODFI liability outside of an RDFI’s in-network return rights to the Breach of Warranty process from start to finish.

Bonus! Attendees will receive a FREE sample consumer Breach of Warranty letter and a FREE sample corporate Breach of Warranty letter! Developed by two industry experts, these samples will provide a solid foundation for RDFIs to develop a Breach of Warranty letter to meet the needs of their unique case.


Agenda:

ACH Breach of Warranty
• Consumer
• Corporate
• Applicable laws / Regs
• Limitations

ODFIs and Originators
• Authorizations
• ODFI Warranty
• Defined
• “expiration” of Warranty
• Valid vs. Invalid
• Return in lieu of Authorization
• Unauthorized Entries outside RDFI Return timeframe
• ODFI liability when funds of Entry are gone
• Rules Violations

RDFIs
• RDFI potential liability for unauthorized debit Entries
• Breach of Warranty process
• Consumer
• Corporate
• Arbitration

Wrap-up
• Case studies to demonstrate process and liability
• Resources
• Q&A


Speakers:
• Mary Mumper-Morrison, AAP, APRP, CAMS, Director, Education, NEACH
• Rayleen M. Pirnie, BCJ, AAP, CERP, Director, Risk & Fraud, NEACH


Audience:
• Audit Department
• BSA/Compliance
• Operations
• Risk Management (Including Fraud Incidents)
• Corporate Account Officers / CTPs




*Please note that the access information will be sent to you in a separate email upon receipt of payment. Access information and support are only provided during normal business hours.

**Price listed is per person and does NOT allow additional registrations for free.


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