Consumer Protection Law,
Banking
Aug. 21, 2025
NACHA's 24-hour rule puts small businesses at risk of financial ruin
Small business owners who fall victim to unauthorized withdrawals have just 24 hours to fight back under the National Automated Clearing House Association's rules -- far less protection than consumers.
Jayne T. Kaplan
Jayne T. Kaplan is a retired attorney who provided individualized services to small and medium-sized business owners.
A plumber, after working for two days on a project goes on his computer to see if the check for the job has cleared and learns that $7,000 has been removed by means of an automated clearing house (ACH) that he never authorized.
A Florist returns from vacation and learns that her business account has been drained by an ACH at the direction of a party she does not know and has no busine...
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