April 17, 2024

La Ronge Northerner

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Bank of America warns of deposit delays in the banking industry

Bank of America warns of deposit delays in the banking industry

Patrick T. Fallon/AFP/Getty Images

The customer uses an ATM outside a Bank of America branch

New York

Several U.S. banks experienced deposit delays on Friday due to an error in their payment processing network, according to the Federal Reserve.

Bank of America has alerted customers that their deposits may be delayed due to an issue affecting several banks. A Chase spokesperson confirmed to CNN that some of its customers’ direct deposits had not been updated.

Customers at Bank of America, Chase, US Bank, Truist and Wells Fargo complained of problems on Friday morning, according to the Times of India. Downdetector.

Some users on X, formerly known as Twitter, They complained that they did not receive their salaries Friday.

The banks stressed that customer deposits remain safe.

Federal Reserve Alert banks On Friday afternoon, the issue was caused by a “processing issue” at the private sector operator of the Automated Clearing House (ACH), a national transaction processing network.

the H system It allows banks to send electronic payments to each other. Everything from direct deposit checks to customer bill payments for mortgages and utility bills flows through this system.

The Fed said an “error” in a batch of payments led to a delay in processing the payments.

The Clearinghouse, the private sector operator of ACH, confirmed to CNN that it “experienced a processing issue” with a group of banking transactions.

Greg McSweeney, a spokesman for The Clearing House, said the issue was caused by a “manual error” and was not related to a cybersecurity issue.

“TCH is working with affected financial institutions on this matter,” McSweeney said in a statement.

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There has been no update on when the issue will be resolved.

Some frustrated bank customers have complained on social media about deposit delays.

“@BankofAmerica Where is my money, and will it cover my bills due today?” One user on X He said.

In a letter to customers on Friday, Bank of America said “some deposits may be temporarily delayed.”

Deposits from Friday may be delayed due to “an issue affecting multiple financial institutions,” the letter said.

“Your accounts remain secure, and your balance will be updated once you receive your deposit,” the Bank of America message said. “You don’t need to take any action.”

“A system issue affected ACH debits and credits sent to us, as well as to other banks,” Chase said in a statement to CNN. “The creators of these deposits are working on resubmitting the payment files and we will publish them as soon as possible.”

An industry source told CNN that the issue did not appear to be a problem specific to the bank.

US Bank said in a statement that it is aware of an “industry-wide technical issue” affecting some deposits.

“Customer accounts remain secure, and balances will be updated as deposits are received,” US Bank said. “We have no timing estimate at this point. Customers do not need to take any action.”

In a post on X, Wells Fargo told customers it was “aware of the deposit issue” and “working on a solution.”

It was not immediately possible to contact the Federal Reserve Bank or the US Treasury Department for comment.

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ACH is operated by the Federal Reserve Banks and the Electronic Payment Network.