Banking Snafu Delays County Workers’ Pay

A banking snafu delayed the direct deposit of $55 million in Los Angeles County paychecks for at least a day, causing county employees concern that their own checks would bounce and that they would be unable to get cash for the weekend.

But bank officials said Friday that although there may be some temporary inconvenience to the county workers, no checks should bounce because of the mix-up. The main inconvenience involves use of automated teller machines, which do not immediately take note of direct deposits made after 7 p.m.

The county deposit was not made until 4 a.m. Friday.

Computer Tape Lost

A computer tape intended for processing of direct deposits for about 55,000 county employees was lost Wednesday after it was turned over to Wells Fargo Bank, said John Rasmussen, assistant county auditor-controller. Wells Fargo coordinates the county’s direct deposits for all banking institutions and credit unions.

David Kvederis, Wells Fargo’s senior vice president in San Francisco, said banking officials discovered Wednesday night, “through our regular quality control procedures” that the tape was missing. He said bank officials tried to notify the county immediately, but could not reach anyone.

County officials furnished Wells Fargo a backup tape on Thursday afternoon, and the payroll information was transmitted to San Francisco and from there through the National Automated Clearing House to banks and savings institutions throughout the state.

Tape Arrived Late

Kvederis said that the money due county employees, while in the banks early Friday, was received too late to register on the automated teller machines until Friday night or this morning. Some smaller banks, which receive the direct deposit information by mail, may not register the additions until Monday, he added.

“There shouldn’t be any bounced checks or overdrafts as a result of this,” Kvederis said. “The only thing missing is an update on the ATMs ahead of time.”

Kvederis said county employees with questions may call Wells Fargo’s San Francisco office, collect, at (415) 243-7985.

Wells Fargo is still trying to find the tape, Kvederis said. He added that the bank, which also handles other direct deposit accounts, will be checking each tape individually to make sure that someone does not find the lost county tape and mistakenly run it through the process again.