Bank declined ACH reversal for misdirected paycheck — what are my options?
My paycheck was accidentally deposited into the wrong account because I entered the last two digits of my account number incorrectly. I corrected the payroll information with my employer on August 3.
My employer, through their payroll bank, submitted an ACH reversal to recover the funds. My bank declined the reversal, citing insufficient funds (NSF) in the receiving account. My employer then submitted a letter of indemnity and supporting documentation, but my bank still declined the recovery.
I have contacted my bank multiple times and opened a dispute. My latest communication was with my bank's dispute team, and I was told the case is still under investigation and that I should wait for a response by mail. I was also told the department handling the case cannot be contacted directly.
I have provided the bank with pay stubs, documentation showing the account number error, the employer's documentation, and the letter of indemnity. I've also submitted complaints to the CFPB, OCC, and BBB.
I understand the original error was mine. My question is what happens now if the funds were withdrawn/spent from the incorrect account.
Has anyone dealt with a similar Capital One/ACH reversal situation? Is there another recovery process available after an ACH reversal is declined for NSF, and what should I be asking my bank while my dispute is under investigation?