New NACHA Rules Take Effect September 18, 2015

New NACHA Rules Take Effect September 18, 2015

Not too long ago, we published a blog regarding the National Automated Clearing House Association (NACHA) and new rules that would soon take effect. NACHA is a group that governs automated clearing houses. The new guidelines will be imposed and enforced by this association beginning September 18th.

NACHA Rules No Second Chances to Play

NACHA’s new guidelines bring great change in the market, capping total ACH returns to 15% with no exceptions. It is apparent the association means business with this new rule. If you try to push past the 15% allowed by NACHA, the ACH provider may choose to terminate transaction privileges, suspending business entirely.

Out with the Old and In With the New NACHA Guidelines

These new changes have lenders saying goodbye to their old school methods of pushing transactions, knowing they will like be returned, but hoping for payment anyway. Under the new NACHA guidelines, this haphazard approach not only racks up expensive consumer service fees for the borrower, but also costs the lenders any hopes of securing another ACH provider.

Is Strategy Needed to Survive New NACHA Rules?

This new legislation enforcing NACHA’s No Second Chances is particularly disturbing to lenders who offer short-term or installment loans. With these high stakes, precautions must be made to ensure lender transactions will clear with ACH providers. Lenders in this market cannot split loans into several payments due to the 15% cap now being imposed.

Obviously, short-term and other high-risk lenders need to make some strategic moves to roll with NACHA punches. These lenders will strategize by becoming more selective when approving customer loans, and learn to recognize when it is in their best interest to chalk attempted ACHs up as a loss. Still more lenders will team up with more powerful companies capable of developing and utilizing more effective ACH strategies approved by NACHA.

Centrinex Strategy for NACHA Approval

Clients requesting loans can depend on Centrinex to follow the letter of the law, ensuring ACH authorizations are approved while providing superior service and support that customers can rely on. Loan requests are immediately scrutinized for errors while ensuring all signatures and consent forms are properly filled in, avoiding steep penalties and other severe consequences.

New NACHA Policy has been Standard at Centrinex for Years

Centrinex has been reviewing ACH debit transactions to avoid unnecessary bank fees long before NACHA passed these new guidelines and 15% cap. The bank is the only organization that benefits from these fees, as excessive overdraft fees via ACH debits are considered bad business. Not only are these transactions costly to the customer, but also very upsetting and can get the lender in trouble with NACHA and other organizations. In unison with NACHA, Centrinex strives to avoid ACH abuse while remaining dedicated to consumers.