On Tuesday, customers of major U.S. banks continued to experience significant glitches when trying to perform a direct deposit. On Friday, the issue arose as a result of faulty payment processing.
On Monday, customers contacted their banks via social media to complain that their direct deposits had been delayed and their wages had not yet been deposited. As of Tuesday, some people still were having an issue.
Financial institutions such as Wells Fargo and Bank of America have asked customers about automated clearing house (ACH) transactions to The Clearing House.
The Clearing House (TCH) explained that due to a processing error, some ACH payment instructions were delivered to banks on November 2 with masked customer names and account numbers. The payment delay is caused because the banks need the information to process incoming payments and credit the money to customer accounts.
According to the Clearing House, it collaborates with the affected clients’ financial institutions and the Federal Reserve to find a solution. Many of the late payments have been posted, and we’ll keep working with banks to get the rest processed as soon as possible.
On Tuesday, TCH said it is collaborating with financial institutions and the Federal Reserve to find a swift solution to the problem. According to TCH, banks are forwarding payments that need to be resent due to the Friday error to the company for processing.
According to a JPMorgan Chase representative, the company will credit customers’ accounts with prearranged direct transfers as soon as possible. They further assured customers that any overdraft costs incurred due to the ACH issue will be reimbursed automatically.
The Consumer Financial Protection Bureau noted that it knows the problem and monitors how banks respond.