Handling Large ACH Debits

This article describes Large ACH Debits within the Forth system. It is organized into the following sections:

• Overview
• Initial Steps
• Debt Program Changes
• Proper Authorizations

Overview

Forth defines a large debit as any single ACH debit transaction of $5,000.00 or more significant. Forth Management must review all large debits before processing.

The maximum amount Forth will process for a single ACH Debit transaction is $20,000.00. The CRM automatically excludes debits over $20,000.00 from batching. For deposits greater than $20,000.00, the consumer can send funds via ACH Credit, bank wire, and/or physical check/money order.

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Initial Steps

1. Forth will run a Transaction Report using the following parameters:
   • Amount - Range: 5,000.00 - 20,000.00
   • Date: Tomorrow and the next business day
   • Type: ACH Client Debit
   • Status: Open, Pending
2. Forth will then locate an authorization for the specific debt. The acceptable forms of authorization include:
   • Account Agreement,
   • Authorization for One Time Direct Payment form (Forth Pay Next Payment Change Document)
   • Amended Schedule B (Forth Pay Amended Payment Schedule)
   • and Verbal Authorization.
3. If the debit is UNDER $10,000.00, the account will be updated with the following note: “Reviewed large debit transaction of $X,XXX.XX on XX/XX/XXXX. (Insert authorization type) uploaded to the account.”
4. If the debit is OVER $10,000.00, the account will be updated with the following note: “Reviewed large debit transaction of $X,XXX.XX on XX/XX/XXXX. (Insert authorization type) uploaded to the account. Sent to manager for final review.” Forth then receives a notification (that includes the Client ID) that a debit over $10,000.00 is ready to be reviewed.
5. Suppose an acceptable form of authorization is not uploaded to the account. In that case, the debit transaction can be deactivated by unchecking the “Active” button via the “Add/Edit Payment” option within the transaction.
   
6. An email notification will be sent to the DSRP through Zendesk.
7. The ticket will remain in a pending status until resolved, and the account will be updated with the following notation: "Reviewed large debit transaction of $X,XXX.XX on XX/XX/XXXX. Was unable to locate an authorization on file. Deactivated debit and sent DRSP notice. Ticket number”
8. DRSP will be notified when the requested authorization has been uploaded. Go back and repeat the process of document review.
9. Save a new note that the authorization has been reviewed and reactivate the debit.

10. The setting “Push to Prior Business Day” is available at the account level and can be toggled on or off.

11. Attempting to enable both “Push to Prior Business Day” and “Push to Next Business Day” simultaneously results in an appropriate error message.

12. Disabling one setting allows the other to be enabled without conflicts.

13. Both ACH debit payments and settlement payments falling on weekends or holidays are successfully moved to the ‘Prior Business Day’ when the setting is enabled and no conflicts exist.

NOTE: Agents can move the debit within three business days of the authorization date if necessary.

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Debt Program Changes

Any change to the debt relief program, such as a large ACH Debit, requires documentation by the DRSP. This can include obtaining the consumer’s signature on an updated recurring debit authorization, a one-time direct payment authorization, or recording a verbal approval. The DRSP must upload the proper authorization to the client dashboard when scheduling the transaction(s). If the consumer cannot be transferred to the DRSP and/or directs the Forth agent to schedule the transaction, the agent must similarly document this request with the appropriate authorization method.

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Proper Authorizations

Transaction searches are performed by Forth twice daily, once in the morning (9 am CST) and a second search in the early afternoon (2 pm CST) to identify large debit transactions and to confirm that the proper authorization is uploaded to the client dashboard.

A Forth agent will immediately notify you via a ticket if and when the proper authorization is not uploaded, detailing the client name, account number, and transaction amount in the ticket. The DRSP must upload the necessary approval before the cut-off time to process ACH Debits and notify FORTH or risk the transaction not processing.

When applicable, an agent can deactivate the transaction to ensure it does not process. In addition to confirming the required information is uploaded on ACH Debits greater than $5,000.00, Forth Management will perform a secondary review of any debit transactions $10,000.00 or greater.

Should you have any questions or require assistance, please contact us at support@setforth.com.

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