Adjustment Matrix Flashcards
Amount Error – Legal amount
An item was encoded for an amount
different than the legal (written) amount or the
written amount differs from the stated amount in the
ANSI X9.100-187 image cash/return letter. Only
applies to amount encoding errors
180 Calendar Days with entry, 1 year without entry
Claim of Damage due to Under-encoding
Compensation for an item that was
under-encoded by the Depositary Bank for which
the Paying Bank is unable to collect the funds.
Example: check for 295.45 encoded for 95.45. BOFD warrants amount is encoded correctly. BOFD submits adjustment for the difference. Paying bank is unable to pay the difference of $200.00
Has claim back to BOFD. This is the claim of damage due to under encoding.
20 business days
Duplicate Presentment
180 calendar days
(Fed - PAID - 6 months)
Late Return
60 Calendar days
$100.00 or greater
(Fed - 2 months)
Late Return Disclaimer
20 days
(Fed - 20 days)
Mismatched Codeline
When the MICR information and electronic information do not match, as a result, a check intended for customer A posts to customer B’s account. Example: Type 25 record does not match MICR.
Sender warrants all information is correct.
Used ONLY for encoding error other than amount field.
90 days
Not Our Item (NOI)
20 days
Item containing routing transit number that does not belong to institution that receives it.
(Fed - 20)
What to do if an FI receives a return that they did not process under ECCHO?
Under ECCHO Rules (XX (D)(9), if a bank
receives a return in error (that bank is not
the BOFD), it must send to correct BOFD or
Returning Location (if identifiable)
Regulation warranty on RCC
Reg CC places liability for unauthorized RCCs on bank that transfers
or presents the item [229.34(b)]
RCC adjustment
90 days
(fed 90 days)
Time frame to file a WSSUP for RCC?
90 days Rule 8
60 days Rule 9
Warranty Indemnity Claim (WIC)
For Check 21
Warranty Breach
1 Year
Note: REG CC 229.53
REG CC warranties 1 year
Warranty Indemnity Claim (WIC)
For Remote Deposit Capture (RDC)
Indemnity
1 Year
Claim made via automated system or sent as manual claim
o Sample RDC Claim Letter available - may also be used to support
automated adjustment claim
Source of Receipt (SOR) – Item
Request to Identify RDC Bank
20 - Days
Fed - 20 days.
Request from paper bank to identify RDC Bank
Warranty Indemnity Claim (WIC)
For Electronically Created Item
(ECI) Indemnity
1 Year
REG CC 22.34(g)
Fed 1-year
Adjustment Reversal - Timeframe
Ability to adjust/correct item that was incorrectly
adjusted
- Reversal must be for a valid reason
- Can only be used when Institution making
claim has reference number for adjustment to
reverse
90 days
(Fed - ERR claim 20 days)
Return
Adjustment
Institution seeks to adjust a return item
that was incorrectly returned
60 days
(would deal direct in Fed)
Wrong Payee Credit
BOFD seeks to pass credit to Drawer’s account at Paying Bank to correct error in Payee processing/credit of the item
Examples: Lockbox bank posts a utility company payment to entity other than the utility company.
180 days
Fed - 6 months
ECCHO Adjustments 180 days
Duplicate Presentment
Wrong Payee
ECCHO Adjustments 90 days
Mis-matched MICR (mismatched code line)
Unauthorized RCC Warranty Claim
Adjustment Reversal
ECCHO Adjustments 20 days
NOI
SOR
Late Return Disclaimer
Claim of Damage due to Under Encoding
ECCHO Adjustments 1 - Year
Warranty Indemnity Claim (WIC)
For Electronically Created Item
(ECI) Indemnity
Warranty Indemnity Claim (WIC)
For Check 21
Warranty Breach
Warranty Indemnity Claim (WIC)
For Remote Deposit Capture (RDC)
Indemnity
ECCHO Adjustments 60 days
Return Adjustment
Late Return
