ALERT: Unemployment Letter of Indemnity

Along with the numerous challenges that have come with Covid-19, Stimulus Payments, and unemployment payments, a fair amount of fraud has been detected. NEACH has received numerous calls and to our knowledge, the first of the state governments ODFIs are beginning to reach out to retrieve erroneous payments.

Receiving financial institutions are beginning to receive return requests with accompanying Letter of Indemnity. The ODFI is requesting the return of funds from the unemployment fraud Entries. This is a result of state unemployment offices auditing the Entries that were sent out and catching the ineligible and fraudulent ones. NEACH has received numerous phone calls and emails regarding the RDFI’s liability, rights, and responsibilities regarding these requests.

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