{"id":10523,"date":"2023-11-07T07:51:27","date_gmt":"2023-11-07T07:51:27","guid":{"rendered":"https:\/\/infundpros.com\/business\/bank-deposit-delays-some-customers-still-havent-been-paid\/"},"modified":"2023-11-07T07:51:27","modified_gmt":"2023-11-07T07:51:27","slug":"bank-deposit-delays-some-customers-still-havent-been-paid","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=10523","title":{"rendered":"Bank deposit delays: Some customers still haven\u2019t been paid"},"content":{"rendered":"
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\n Some customers still haven\u2019t received their direct deposit paychecks following a \u201chuman error\u201d last week deep in the plumbing of America\u2019s banking system.\n <\/p>\n

\n The deposit delays are linked to a problem that emerged on Friday with the Automated Clearing House (ACH) payments system, causing headaches for consumers and employers.\n <\/p>\n

\n Banks stressed to customers that all funds are secure. Payments that did not go through late last week had to be resent, a process that can take time.\n <\/p>\n

\n It\u2019s not clear how widespread the impact continues to be or how long it will take for all customers to receive their deposits.\n <\/p>\n

\n The Clearing House, the private operator of ACH, told CNN on Monday it is working with banks and the Federal Reserve to \u201cresolve this issue as quickly as possible.\u201d\n <\/p>\n

\n \u201cMany of the delayed payments have already posted, and we will continue working with financial institutions to ensure the remaining transactions are processed,\u201d The Clearing House spokesperson Greg MacSweeney said in an email.\n <\/p>\n

\n An industry source confirmed to CNN on Monday that it\u2019s likely some customers haven\u2019t received their deposits yet. The source stressed that banks are at the mercy of the originating bank to resend payment files.\n <\/p>\n

\n Federal regulators are watching closely.\n <\/p>\n

\n In a statement to CNN, a spokesperson for the Consumer Financial Protection Bureau said the agency is \u201caware of the issue and monitoring how institutions are responding.\u201d\n <\/p>\n

\n \u201cThis brief disruption underscores the importance of the nation\u2019s payments infrastructure,\u201d the CFPB spokesperson said.\n <\/p>\n

\n As of Monday afternoon, Bank of America and Chase are among the companies where users are reporting problems on Downdetector.\n <\/p>\n

\n Wells Fargo, US Bank, Truist and other banks where users reported problems on Friday ranked lower on Downdetector.\n <\/p>\n

\n Some customers are complaining they still haven\u2019t been paid, while others say they have received their direct deposits.\n <\/p>\n

\n \u201cBruh, what\u2019s wrong with @BankofAmerica I can\u2019t even pay my bills,\u201d said one user on X<\/a>, formerly known as Twitter.\n <\/p>\n

\n Another user on Downdetector wrote to Wells Fargo complaining that payday was Friday and on Monday nothing had been updated.\n <\/p>\n

\n \u201cWells Fargo can y\u2019all speed it up? Some of us do have bills to pay!\u201d the user said.\n <\/p>\n

\n Wells Fargo told CNN the bank will update account balances as originating financial institutions reissue deposits. \u201cWe continue to work directly with our customers,\u201d Wells Fargo spokesman Jim Seitz said.\n <\/p>\n

\n Bank of America continues to display an alert to online customers warning them that \u201csome deposits may be temporarily delayed\u201d because of an \u201cissue impacting multiple financial institutions.\u201d\n <\/p>\n

\n \u201cYour accounts remain secure, and your balance will be updated as soon as the deposit is received,\u201d Bank of America said in the alert. \u201cYou do not need to take any action.\u201d\n <\/p>\n

\n Chase explained to customers in a message posted on Downdetector that a \u201csystem issue\u201d impacted ACH debits and credits sent to it and other banks.\n <\/p>\n

\n \u201cThe originators of these deposits are working to resend the payment files and we will post them as soon as we can,\u201d Chase said in the message.\n <\/p>\n

\n Asked for comment, multiple banks referred inquiries to The Clearing House, which is owned by the largest commercial banks including Bank of America, JPMorgan Chase, CitiBank and Wells Fargo.\n <\/p>\n

\n MacSweeney, The Clearing House spokesperson, told CNN on Monday that the problem started as a \u201cprocessing error\u201d on Thursday where some ACH payment instructions were sent to financial institutions with account numbers and customers \u201cmasked.\u201d That missing data meant that some ACH payments were delayed.\n <\/p>\n

\n \u201cThe November 2nd error was an unfortunate and isolated issue, and immediate steps have been taken to prevent a reoccurrence,\u201d The Clearing House spokesperson said. \u201cThe ACH network continues to operate normally, processing tens of millions of electronic payments each day.\u201d\n <\/p>\n

\n The Federal Reserve alerted banks Friday afternoon there was a \u201cprocessing issue\u201d at ACH, the system that allows banks to send electronic payments to each other. Banks use that system to send everything from direct deposit paychecks and Social Security checks to customer bill payments for mortgages and utilities.\n <\/p>\n

\n The Fed noted that the problem originated in the private-sector operator The Clearing House.\n <\/p>\n

\n The Clearing House previously said the problem was caused by a \u201cmanual error\u201d and was not linked to a cybersecurity issue.\n <\/p>\n

\n MacSweeney said the problem impacted less than 1% of the daily ACH volume in the United States.\n <\/p>\n

\n Of course, 1% of a massive system is still a large amount. The ACH Network processed an average of $330 billion per day in September, according to Nacha, a nonprofit that governs the network. <\/em>\n <\/p>\n

\n Multiple customers complained online over the weekend and on Monday about a lack of communication from their bank about the delayed deposits.\n <\/p>\n

\n Dennis Kelleher, CEO of financial reform advocacy firm Better Markets, was not surprised.\n <\/p>\n

\n \u201cThere always seems to be a conspiracy of silence in the industry when things go wrong\u2026 There should be full transparency so that the public is informed and that there is a basis for confidence that the problems have actually been fixed,\u201d Kelleher told CNN. \u201cWithout transparency you can\u2019t have oversight or accountability, which erodes trust and confidence.\u201d\n <\/p>\n<\/p><\/div>\n