Fed Prepares Customers for Check-Processing Moves

Give Yourself a Price Break

Fed Announces New Investigation Types for Actual Availability

Time’s Up!

Fuel Surcharge Added for Mixed and Other Fed Cash Letters

U.S. Treasury’s Retail Securities To Be Consolidated

Changes to Eighth
District Cash Operations
Announced

Welcome Charleston Customers and Regional Account Exec Dave Fletcher

Learning about Check 21 and Imaging Was on the Minds of Many

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Fed Announces New Investigation Types for Actual Availability

The Federal Reserve System has moved from the use of rainbow sheets (or provisional credit) to actual availability for crediting direct send and consolidated shipment deposits. In conjunction with this shift, the Fed has enhanced its cash letter credit inquiry and dispute process to more clearly reflect the nature of the inquiries and disputes. To enable direct send and consolidated depositors to process adjustments for actual availability, the Fed also created several new adjustment investigation types (I-types) to handle inquiries when an incorrect amount was credited or no credit was received.

Direct send and consolidated shipment depositors will not be able to use the DOS-based FedLine^® application to send adjustments for the new actual availability adjustment types. Only the FedLine Web Check Adjustment application will accommodate these new adjustment codes.

The paper adjustment form now includes the new adjustment I-types for actual availability. This form must be used by direct send and consolidated shipment depositors who would normally submit an adjustment request via DOS-based FedLine. In addition to the new I-types, the adjustment request form includes two new fields: DCR (Date Credit was Received) and EDC (Expected Date of Credit). Refer to www.frbservices.org for the Actual Availability Depositor Reference Guide and www.frbservices.org/Retail/QRG-FormsDocs.html for the revised adjustment request forms.

Summary of New I-Types

The Missing Cash Letter (MCL) was updated to be used when a direct send or consolidated shipment depositor has not received credit for a cash or return letter deposit. A missing cash letter adjustment occurs when a cash or return letter was charged, but the physical items were not received. This investigation type usually occurs when a paying bank reports non-receipt of a cash or return letter and requests a credit. The adjustment request is untimely 365 days from the date of the cash letter.

The new Late Cash Letter Credit (LCLC) should be used when direct send or consolidated shipment depositors believe they have received an untimely credit for a cash or return letter. The adjustment request time frame is 45 days from the cash letter date. This adjustment request will not result in a hard dollar debit or credit. An as-of adjustment may be warranted.

The Incorrect Cash Letter Credit (ICLC) is used when a direct send or consolidated shipment depositor receives credit for an incorrect amount. This scenario usually occurs when a Fed office credits a depositor for an amount that is different from the amount that is expected by the depositor. The adjustment request time frame is 365 days from the cash letter date.

The Extra Cash Letter Credit (ECLC) will be used when a direct send or consolidated shipment depositor receives credit for a deposit for which they are unable to reconcile (for instance, the depositor believes it has received credit in error). A copy of the cash letter is needed to support the credit. This may happen when a Fed office credits the wrong depositor for a cash or return letter deposit. The adjustment request time frame is 365 days from the cash letter date.

Online Resources

Customers are encouraged to use the Account Management Information (AMI) application available through FedLine Web. AMI not only provides real-time information, but has search features to help perform inquiries on specific cash letter credits and debits. Links have also been established so that you can access the Check Services application or easily view the Check Broadcast Messages.

Direct send and consolidated shipment depositors will find regularly updated information online at www.frbatlanta.org. Visit the “Services for Financial Institutions” home page, then select “Check Relay” from the left-hand navigation bar. The Check Relay site offers real-time performance reporting indicating scheduled and actual deliveries and, in many cases, the actual disposition of late deliveries. The Check Relay staff will endeavor to report all available information on late deposits as soon as the information becomes available and as it is reported by the receiving Reserve Bank offices.

As always, you can also contact your account executive if you need additional information.

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