ARLINGTON, Va.—NAFCU has lodged concerns with the Treasury Department over potential burdens on depository institutions, such as credit unions, from a new proposal.
NAFCU Regulatory Affairs Counsel Andrew Morris sent the letter to addresses a Treasury Department proposal that would align federal agency rules governing participation in the automated clearing house network with industry standards.
Morris also thanked the Treasury’s Bureau of Fiscal Service for issuing the proposal, which clarifies the roles and responsibilities of ACH network participants and incorporates amendments to ACH operating rules promulgated by NACHA – The Electronic Payments Association.
The proposal calls for implementation of Phase 1 same-day ACH amendments to be delayed with respect to government receipt of same-day credit entries. Morris said the uncertain schedule for same-day processing and origination “may represent an ongoing challenge for credit unions and their members – particularly those receiving federal benefit payments.”
Processing of same-day credit entries received by agencies will not start until Aug. 30, 2017. However, the origination of same-day entries will be governed by future guidelines. Morris said NAFCU is concerned that selective participation in same-day ACH “defeats the purpose of the financial sector’s transition to the same-day standard,” and asked that the Fiscal Service adhere as close as possible to the original implementation schedule for same-day ACH.
Morris also identified certain network practices that imposed burdens for credit unions and their members. NAFCU has received several complaints from credit unions about federal agencies changing ACH payroll file numbers without notice, which delays processing of ACH entries. NAFCU encouraged Fiscal Service to issue guidelines for agencies to ensure payroll file changes are accompanied by timely notifications.