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Fiscal Services Updates Process for

Reclamation of Erroneous Enrollments

The Fiscal Service will begin holding financial institutions liable for providing incorrect Automated Clearing House (ACH) enrollment information to a Federal agency resulting in an erroneous or fraudulent payment and subsequent loss to the Government. If the Fiscal Service determines that a recipient's ACH payment was misdirected because an institution submitted incorrect banking information as part of an enrollment, or because the ACH payment or payments were misdirected because of a fraudulent enrollment, the Fiscal Service will submit a Notice of Direct Debit (Fraudulent Payment Enrollment) to the Originating Depository Financial Institution (ODFI).

The Notice will specify the payment or payments misdirected because of an erroneous enrollment, identify the date and method of the erroneous enrollment and/or ACH change, and the list of payments and payment amounts for which the ODFI is liable. Upon receipt of the Notice, the ODFI has 30 days to return the full amount of the payment or payments via ACH using the R06 return reason code. If the full amount of the payment or payments the ODFI is liable for is not available for return via ACH, the Fiscal Service will debit the ODFI's Federal Reserve account. For more information on the process, please visit:

http://www.fiscal.treasury.gov/fsreports/ref/greenBook/GBUpdateMar2015ENR.pdf

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