Skip to content
BOL Conferences
Thread Options
#653079 - 12/15/06 08:55 PM Interest Charge on Negative Collected Funds
gadawg1 Offline
Gold Star
Joined: Sep 2006
Posts: 419
Georgia
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?

I am lost on this one.....

Return to Top
Deposits and Payments
#653102 - 12/15/06 09:09 PM Re: Interest Charge on Negative Collected Funds gadawg1
Bobw Offline
Gold Star
Bobw
Joined: Nov 2006
Posts: 336
New England
You would need to disclose it and I would think you are creating a loan product, much like overdraft protect...just my thoughts
_________________________
just my opinion, based on my 30+ years

GO RED SOX!!!

Return to Top
#653131 - 12/15/06 09:32 PM Re: Interest Charge on Negative Collected Funds gadawg1
mck401 Offline
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.
_________________________
Work less, play more.....why not????

Return to Top
#656191 - 12/22/06 02:03 PM Re: Interest Charge on Negative Collected Funds mck401
gadawg1 Offline
Gold Star
Joined: Sep 2006
Posts: 419
Georgia
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?

Return to Top
#656280 - 12/22/06 03:29 PM Re: Interest Charge on Negative Collected Funds gadawg1
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#656283 - 12/22/06 03:30 PM Re: Interest Charge on Negative Collected Funds rlcarey
gadawg1 Offline
Gold Star
Joined: Sep 2006
Posts: 419
Georgia
Thanks to all of you for your responses. Happy Holidays.

Return to Top

Moderator:  John Burnett