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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?

NL - SE listen to your users
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2 Answers2

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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.

Jesse
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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.

Alex
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