amit.gupta1
Junior Member
What is the name of your state? Illinois
Hello,
I read on another thread that under Federal Regulation E, an employer only has "5 banking days" in which to reverse a direct deposit. After this 5-day period, it is my understanding that the employer no longer has any authority to reverse a deposit.
Questions:
1) I have read Federal Regulation E as well as the Electronic Funds Transfer Act online and could not confirm for myself the 5-day reversal timeline. Could anyone please direct me to the website/link that states this explicitly?
2) Is this 5-day reversal timeline applicable for all states including Illinois? I am assuming so since Federal Regulations usually trump state legislation.
3) Could someone also please define what constitutes a "banking day"? For example, my bank (Citibank) has its branches open from Monday through Saturday and limited hours on Sunday as well. Does banking day = business day only?
Does the fact that I have closed the checking account to which I gave my employer direct deposit authorization have any bearing on the 5-day reversal timeline? The employer has not contacted me yet about a reversal of their deposit made on 1/5/07, despite the account closure completed on 1/9/07.
Thanks for your help!
Hello,
I read on another thread that under Federal Regulation E, an employer only has "5 banking days" in which to reverse a direct deposit. After this 5-day period, it is my understanding that the employer no longer has any authority to reverse a deposit.
Questions:
1) I have read Federal Regulation E as well as the Electronic Funds Transfer Act online and could not confirm for myself the 5-day reversal timeline. Could anyone please direct me to the website/link that states this explicitly?
2) Is this 5-day reversal timeline applicable for all states including Illinois? I am assuming so since Federal Regulations usually trump state legislation.
3) Could someone also please define what constitutes a "banking day"? For example, my bank (Citibank) has its branches open from Monday through Saturday and limited hours on Sunday as well. Does banking day = business day only?
Does the fact that I have closed the checking account to which I gave my employer direct deposit authorization have any bearing on the 5-day reversal timeline? The employer has not contacted me yet about a reversal of their deposit made on 1/5/07, despite the account closure completed on 1/9/07.
Thanks for your help!