Welcome Discovery FCU
In May, we will welcome Discovery FCU, Reading, PA, to the network as an issuer and acquirer. Their members will begin using shared branching on May 1, 2015 and your members can visit their office beginning on this date as well.
Discovery FCU’s office is located at 2744 Century Blvd., Reading, PA 19610. For your convenience, click on an updated PaCUSC Contact Listing below:
CO-OP Shared Branching NGN Reports
CO-OP Shared Branching updated their NGN Reports. The distribution change that was made to the D504 Mobile Banking Registered User Report is the main change. This report is now provided monthly and will include all registered mobile users, totals by device type, totals by carrier, and the number of devices activated for each mobile service.
Check Notifications can Prevent Fraud
Unfortunately we can all be affected by fraud; either knowingly by a member or not and, in some cases, the member may be totally unaware. Because of this, we have in-state policies regarding faxing large check deposits to the issuer credit union. Here is an example how this policy helped save a credit union.
American Heritage FCU’s Carriage House branch suspected a check was counterfeit through the use of TrueChecks, and immediately faxed a copy over to Eagle One FCU as required in the in-state policies.
Eagle One FCU called American Heritage to thank them for the alert. Since they received the alert in a timely manner, they were able to confirm with the financial institution that it was indeed a counterfeit on the same day it was deposited.
This is a prime example of why we ask large check deposits to be faxed the same day. Procedures indicate faxing is only for in-state credit unions; however, credit unions may extend this courtesy to other credit unions as well.
Escheat Questions and Answers
Question: What happens if a member has purchased a Cashier’s Check or Teller’s Check and the check has never been presented for payment?
Answer: If the check has gone unpaid for three (3) years, it is subject to PA’s Unclaimed Property Law. The amount of the check would be remitted to the State, just like your other dormant accounts.
Question: Do we need to contact the purchaser or the payee when trying to locate the “owner” of the funds?
Answer: You would attempt to notify the purchaser of the check, who will normally be your member. In the case of credit unions that are a part of Shared Branching, that might be more difficult. The credit union, as part of the shared branching network, may have sold the Official Check to another credit union’s member. While due diligence is not required prior to escheating funds to the State, it is highly recommended; and, in this case, the credit union should attempt to locate the purchaser prior to escheating. In any case, the credit union should document any effort that is made, and any reasons why notification was not possible.
Question: What do we do if we reach the purchaser and now they want to stop payment on the check and get their money back?
Answer: In this situation, you would follow your normal procedures for official checks. If the member says the check was lost, you would complete the Declaration of Loss form and wait 90 days before refunding the check. Under the UCC, stop payments on official checks are discouraged.
Branching Out is a monthly publication of Pennsylvania Credit Union Service Centers, Inc.
For questions about this newsletter or about shared branching, please contact Sandy Shenk, PaCUSC State Coordinator, 800-932-0661, Ext. 5267.