WASHINGTON — In a comment letter to NACHA–the Electronic Payments Association–CUNA encouraged the standard setting entity to reconsider many of the provisions in its proposal on Network Enforcement Rules.

"Currently, NACHA cannot compel Originating Depository Financial Institutions (ODFIs) to stop originating ACH transactions for the highest risk users, such as customers with excessive returns," CUNA Assistant General Counsel Lilly Thomas wrote. "Expanding the enforcement procedures will help achieve NACHA's goals of ensuring high-quality ACH transactions and reducing risk while not burdening all ACH participants."

CUNA, while supporting a reporting requirement for originating depository financial institutions when return rates exceed a threshold, urged NACHA to use the rule-making process with a comment period for setting the triggers for reporting information rather than the NACHA Board. "An initial monthly return rate for unauthorized entries exceeding 1% or forward presentment or returns for unauthorized entries exceeding 500 per month per Originator/Third Party Sender has been recommended…" Thomas noted.