Compensation, Arbitration & Rules Enforcement Flashcards
Protects the loss of use of funds
Is Intended that no participant to be unjustly enriched or injured
With, no admission of negligence or fault and the Claim can not to exceed benefit received
Compensation
In a compensation Claim, the loss suffered must be at least $__
$200.00
Fee of a compendation administrative fee, per entry
$200.00
Compensation claim reasons may include
- Failure of a payment to be transmitted timely
- Transmission of a payment to an incorrect account or incorrect
Participating DFI - Transmission of a duplicate entry
Compensation formula includes
- Entry amount
- Federal Funds Rate
- Number of days
- $200 administrative fee
- Applicable Deposit Insurance Assessment
this is a Low cost, expeditious mechanism for
resolving disputes within the ACH Network, bypassing the need to
resolve disputes through the court system
Arbritration
Damages for arbritration must be $__
$250.00 or more
Time period that an FI can submit and arbritration (alleged violation) claim
Within 2 years of alleged violation
- Damages of $250 or more but less than $10,000
- Mandatory for both parties
- No hearing is held
- 1 arbitrator
- Stipend to the arbitrator is $100
Arbitration Procedure A
Arbitration Procedure B
- Damages of $10,000 or more but less than $50,000
- Mandatory for both parties
- No hearing is held
- 3 arbitrators
- Stipend is 1% of decision for each arbitrator
Arbitration Procedure C
- Damages are $50,000 or more
- Both parties must first agree to arbitration
- Hearing is held
- Parties can agree to Procedure B
- Legal counsel may be present at hearing
- 3 arbitrators
- Stipend is 1.5% of decision for each arbitrator
Selection of Arbitrators for Procedure A
- Each party given 10 days to delete 2 names from list of 5
- Nacha will choose 1 arbitrator not deleted from either
Selection of Arbitrators for Procedure B and C
- Each party given 10 days to delete 3 names from list of 10
- Nacha will choose 3 arbitrators not deleted from either
Arbritration procedures that the following presentation of case apply to:
- Notification of arbitrator(s), party has 14 days to submit supporting information
- Arbitrator(s) has 30 days to render decision
- Arbitrator(s) and each party pays own expenses
Arbitration Procedures A and B
Arbritration procedures that the following presentation of case apply to:
* Arbitrator sets hearing date not less than 90 days after each party notified of
arbitrator selections
* At least 30 days notice provided by Nacha prior to hearing
* After hearing, arbitrators have 30 days to render decision
* Arbitrators entitled to recover some expenses from either party
Arbitration Procedure C
