CUNA Comment Letter

Comment Letter Regarding: Production of Copies of Checks Within 5 Days for Certain ACH Transactions

October 9, 2001

Mr. William Colbert
Network Services Associate
NACHA – The Electronic Payments Association
13665 Dulles Technology Drive
Suite 300
Herndon, Virginia 20171

Dear Mr. Colbert:

The Credit Union National Association (CUNA) appreciates the opportunity to comment on a suggestion from NACHA's Board of Directors to modify the rules for ARC ACH (automated clearing house) entries and RCK ACH entries. This modification would shorten the time an originating depository financial institution (ODFI) has to provide a copy of a consumer's original check, when that copy is requested. CUNA supports this proposed modification and recommends that the response time be shortened to five days.

Currently, NACHA's Operating Rules specify that an ODFI must provide a reproducible image or copy of the front and back of the consumer's check within ten banking days of receiving a written request from the receiving depository financial institution (RDFI). The NACHA Board of Directors expressed concern that since a corporate receiver has only 15 days from receipt of a statement to file a claim for an immediate recredit, the ten-day response time did not leave enough time for corporate receivers to investigate and file for an immediate recredit. As a result, NACHA distributed a survey requesting comments on various timeframes.

CUNA recommends that the response time be shortened to five banking days. Five banking days should provide ODFIs adequate time to retrieve the information and provide RDFIs the flexibility to act within the time limits required for immediate recredits.

CUNA commends NACHA for initiating positive changes to the ACH system that will benefit RDFIs and consumer and corporate RDFIs. If you have any further questions, please contact CUNA's Assistant General Counsel Michelle Profit at (202) 682-4200.


Michelle Q. Profit
Assistant General Counsel