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I'm attempting to settle a debt using a valid bank account via a typical online form provided by a financial services institution. The financial services institution has apparently accepted and validated the routing number and account number in questions, but when they execute the debit instructions the bank rejects the transaction and returns the ACH code: R34 - RDFI participation has been limited by a federal or state supervisor.

What in the world does this mean? How can I remedy this situation?

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A federal or state regulator has ordered that the RDFI cannot participate in the ACH network, or the RDFI's participation has been limited in some capacity. You need to contact the RDFI for more details...ask for their ACH operations group. The RDFI is the institution receiving the ACH transaction. It could be either the debit side or credit side. It is not the institution originating the ACH transaction, which is the ODFI.

The entire RDFI institution might be restricted for an extremely poor audit, or rampant suspect money laundering or terrorist funding.

Specific accounts at the RDFI might be limited for a variety of reasons, including freezing the account for suspicious activity (money laundering or terrorist funding), court order for impending legal proceedings, IRS levies for nonpayment of taxes, or perhaps child support delinquency. I am making an educated guess on the reasons.

  • The RDFI in question is the Federal Reserve Bank of Atlanta. Could they possibly be suspect for money laundering or terrorist funding? – Fetter Doubt Jul 19 '17 at 6:35
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    The RDFI should not be the Fed...if it actually is in your file, this is why your file is rejecting. Your "valid bank account" is not held at the Fed. The RDFI is always a depository institution. The "Immediate Destination" might be the Fed, but this is a file header record and is separate from the RDFI detail record for each transaction. – Jesse Jul 19 '17 at 11:14
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The RDFI (Receiving Depository Institution) is the place where you keep your money and where the Debit is going to be made. Unfortunately the Debit did not go through for some kind of regulatory reason that I don't understand. You could ask them why people are not allowed to make ACH Debits there or you can try to pay through a different bank.

  • I wish I could consider this helpful, but it really doesn't provide any more information than I already know. Who/what is a federal or state supervisor and who authorized this alleged person to limit RDFI participation? How do I contact such a person? – Fetter Doubt Jun 29 '17 at 7:40
  • @FetterDoubt Your question suggests you don't understand the information here. The RDFI is your bank. You need to contact your bank and find out what's going wrong. Your bank is definitely not the Federal Reserve bank of Atlanta. – iheanyi Jul 21 '17 at 21:01
  • I certainly agree that I do not understand. @Alex writes, the RDFI "is the place where you keep your money and where the Debit is going to be made." That is the Federal Reserve Bank of Atlanta. The institution that is requesting the transfer of funds is BMW Financial Services. I have given them access to "my" account at the FRBA. It is the FRBA that is "returning" R34. If the account did not exist or was not "mine" then surely we would be getting a different R code (R01, R02 or R03). But that is not the case. Absent evidence to the contrary, I am led to believe that the account is valid. – Fetter Doubt Jul 23 '17 at 8:04
  • Your account is not at the Fed. It is simply not possible. Unless you are a bank. Only depository institutions have accounts directly with the Fed. What does your checkbook say, it must have a bank name on it? Or, where do you sign into your online banking? – Jesse Aug 3 '17 at 17:07

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