Notification of Change

Notification of Change - Responsibilities of Originators

Originators are required to respond to Notifications of Change by:

Investigating incorrect data
Making corrections within six banking days of receipt of the NOC information or prior to initiating another entry to the Receiver’s account, whichever is later

Recurrence of a rules violation can result in fines from $1,000 - $500,000 and possible suspension. Originators should be thoroughly familiar with the NOC Change Codes and their meanings.

Checking for NOC’s

Click Special Reports under Information Reporting in left menu
Click Select Accounts next to ACH Returns
In the Available Accounts list, select the accounts to include in your report
Notes:
The report displays accounts in the order they are chosen.

Press Shift while clicking the accounts to select multiple accounts at one time.
Click Add
To reorder the accounts in the Selected Accounts list, click Ascend Order or Descend Order.

Note:

If you select All Accounts from the Available Accounts list, then you cannot reorder the accounts. All Accounts selection only produces reports in ascending order
Click OK
Select a date from the drop-down list.

Note:

The available report dates are based on the Special Report selected.
Select a format: Document (PDF) or Browser (HTML).
Click Run.

Reading the ACH Return Report

The correct information appears in the Addenda Information column of the report. The information originally entered appears in the respective column. For Example: the first NOC has a return code of C01, an incorrect DFI Account Number. The correct account number is 099222.

NOC Change Codes generally fall into two categories:

• Codes that indicate an error in the account information—entries carrying these codes indicate that the RDFI did receive the entry but the account information or information regarding the Receiver was incorrect. Changes must be made so that the RDFI can handle the entry appropriately.

• Codes that indicate an error in the routing of the entry - entries carrying these codes indicate that the entry needs a change in the routing information. Failure to change the routing information could cause subsequent entries to be delayed or returned. An Originator should not assume, however, that a change to a Routing Number affects all ACH transactions going to that Routing Number. For example, if a financial institution buys some branches of a failed institution, it might initiate NOCs only for those specific accounts they have now taken over. The original Routing Number may be valid for other accounts.

Originators should monitor the Notifications of Change that are received to see if enrollment procedures should be modified.

Note:

When an account or branch has been sold to another RDFI, the routing number in the Receiving DFI Identification field of the original entry may not match the routing number in the Originating DFI Identification field of the NOC. However, the RDFI’s routing number from the original entry can be located in the Original Receiving DFI Identification field in the addenda record of the NOC.

Table of Change Codes

Code	Meaning/Example
C01	Incorrect DFI Account Number Correct DFI Account Number appears in first (left justification) 17 positions of the Corrected Data Field. Example: This code would also be used when an Account Number is incorrectly formatted.
C02	Incorrect Routing Number Correct Routing Number (including Check Digit) appears in first nine positions of the Corrected Data Field. Example: Due to merger or consolidation, a once valid Routing Number must be changed.
C03	Incorrect Routing Number and Incorrect DFI Account Number Correct Routing Number (including Check Digit) appears in first nine positions of the Corrected Data Field--correct DFI Account Number appears in the 13th through 29th position of same field with a space in the 10th , 11th , and 12th position. Example: Due to merger or consolidation, a once valid Routing Number must be changed, and in most instances this change will cause a change to the account numbering structure.
C04	Incorrect Individual Name / Receiving Company Name Correct Individual Name/Receiving Company Name appears in first 22 positions of the Corrected Data Field.
C05	Incorrect Transaction Code Correct Transaction Code appears in first two positions of the Corrected Data Field. Example: An item which the RDFI determines should be posted to their Demand Deposit Account (DDA) System contains a Savings Transaction Code.
C06	Incorrect DFI Account Number and Incorrect Transaction Code Correct DFI Account Number appears in the first (left justification) 17 positions of the Corrected Data Field -- correct Transaction Code appears in the 21st and 22nd positions of the same field with spaces in the 18th, 19th, and 20th positions. Example: An entry posting to a savings account should actually be going to a demand account or vice versa, and the account number is also incorrect.
C07	Incorrect Routing Number, Incorrect DFI Account Number, and Incorrect Transaction Code Correct Routing Number (including Check Digit) appears in the first nine positions of the Corrected Data Field -- correct DFI Account Number appears in the 10th through 26th positions of the same field -- and correct Transaction Code appears in the 27th and 28th positions of the same field. Example: An entry posting to a savings account should actually be going to a demand account or vice versa, and the routing number and account number are also incorrect.
C09	Incorrect Individual Identification Number Correct number appears in first 22 positions of the Corrected Data Field. Example: Individual’s Identification Number within the Company is incorrect, either on initial input or through merger or consolidation.
C13	Addenda Format Error Information in the Entry Detail Record was correct and the entry was able to be processed and posted by the RDFI. However, information found in the Addenda Record was unclear or was formatted incorrectly. Example: A CCD entry is received with an “05” Addenda Type Code, but the addenda information does not contain payment related ANSI ASC X12 data segments or NACHA endorsed banking conventions.

ACH Return Code Reference

ACH Rules Violation