WASHINGTON (1/14/14)--NACHA--The Electronic Payments Association must minimize costs and unintended consequences for credit unions as it takes steps to improve automated clearinghouse network risk management and enforcement, the Credit Union National Association said in a comment letter.
The NACHA plan could improve NACHA's ability to identify and enforce rules against "outlier" originators, those responsible for the highest levels of exceptions. An originator is any individual, corporation or other entity that initiates entries into the Automated Clearing House Network.
The NACHA proposal would:
In the letter, CUNA Assistant General Counsel Dennis Tsang noted that credit unions generally originate higher quality transactions and generally support many of the proposed changes to reduce exceptions from "outlier" Originators. However, he noted, originating financial institutions may not be able to fully control the transactions originated by the Originator and may make risk management changes that would reduce access to the ACH network for some consumers, including the underserved.
CUNA also recommended that NACHA:
For the full comment letter, use the resource link.