HERNDON, Va.-NACHA-the Electronic Payments Association-has requested comments on its recent proposal to permit electronic collection of bounced check fees. The comment period closes Thursday, December 5, 2002. The proposed rule would clarify that Regulation E allows for the collection of a service fee directly and electronically from the account of the consumer writing the check. A two-step notification process would be added under the proposal in lieu of obtaining the consumer’s written authorization. This process would include a statement “clearly and conspicuously” that a service fee for a bounced check may be collected electronically displayed at the point of sale or on a bill in advance of receiving the consumer’s check. Additionally, the check writer must be provided with a second notice at least 10 banking days before the intended date of the debit. According to NACHA, the process should be more streamlined and cost effective for all involved. The implementation date in the proposal is March 14, 2003.

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