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NACHA set up a Child Support Task Force to improve the operations of state disbursement units. The Task Force was made up of members from the SDUs and held monthly calls to discuss issues and projects. The Task Force surveyed the SDUs to learn about their operations, their level of ACH training, and their acceptance of various electronic file formats. In just a year this Task Force developed ACH training for the child support community (Training Manual for Electronic Child Support Payments) as well as a User Guide for Electronic Child Support Payments.
These two documents provide guidance for the two formats (CCD+ and CTX) in which states are required to be able to receive electronic payments. NACHA has assisted OCSE in maintaining technical standards for electronic payments for child support. Also took a leading role in contacting banks that were accepting unapproved electronic formats, Responsive web design notifying them that this activity was out of compliance with the NACHA Operating Rules.
With the assistance and encouragement of NACHA and its regional member associations, the remitting of child support payments electronically has increased in most states. Most SDUs have initiated direct deposit of child support to custodial parents, and several states have implemented electronic assess card (EAC) programs as a way to send child support payments to their unbanked custodial families.
Seven states now offer web-based payment services to employers these efforts help states reduce their undistributed collections. The amendment that went into effect June 13, 2003 modified the NACHA Operating Rules to explicitly allow NACHA, in cases where the return rate for unauthorized TEL transactions appears to exceed 2.5%, the right to request an ODFI to provide NACHA with specific information relating to Originators of those TEL entries.
ODFIs are obligated to provide the requested information within 10 banking days of receipt of NACHA’s written request to the COO of the Financial Institution. Failure to provide the requested information in a timely manner will constitute a willful disregard of the NACHA Operating Rules and may subject the ODFIs to applicable fines under the National System of Fines. The COO at the ODFI will receive a letter informing them that it appears the ODFIs Originator has exceeded the 2.5% unauthorized return rate on TEL.