A question has been posed to me from managment. Can we charge interest on negative balances on personal checking accounts? Can we charge interest on negative balances on business accounts?
Anyone doing this or heard of doing this? What kind of disclosures would be required if we can do this?
mck401
Diamond Poster
Joined: May 2006
Posts: 1,168
Texas
I don't know how it's done but I have heard of larger banks doing this or charging a flat daily fee for being overdrawn. I personally think it's a bit unfair.
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Work less, play more.....why not????
Do any of you do this for business accounts? Since these would not fall under Reg DD nor Reg E since they are business accounts, what kind of disclosures do you provide?
Many banks have this type of charge built into thier business account analysis process. You just have to make sure your business accountholder's agreement discloses this fee.
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