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#93453 - 07/01/03 04:01 PM Fee Businesses can charge for Return Checks
Anonymous
Unregistered


Today I had one of my business customers contact me trying to find out if there is a maximum fee a business can charge a customer for a returned check. I did not know, and could not find it anywhere. Can someone help me out?

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#93454 - 07/01/03 05:13 PM Re: Fee Businesses can charge for Return Checks
Julie Offline
Junior Member

Registered: 09/27/01
Posts: 26
Loc: Indiana

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#93455 - 07/01/03 05:16 PM Re: Fee Businesses can charge for Return Checks
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40960
Loc: Bloomington, IN
D, I've searched several references and I am also unable to come up with a cite that governs that. It's unlikely, but it may be possible that's not regulated.

If you come up with something I would appreciate you sharing it with us.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#93456 - 07/01/03 05:23 PM Re: Fee Businesses can charge for Return Checks
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40960
Loc: Bloomington, IN
Quote:

Try this:
http://www.in.gov/dfi/consumer/indiana_dishonored_checks_and_dr.htm##c





Julie, I saw this document but this document appears to deal mostly with what the penalities would be if the check has to be "collected". I did not see anything concerning the amount a "merchant" may charge. Did I miss it?
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#93457 - 07/02/03 12:06 PM Re: Fee Businesses can charge for Return Checks
Julie Offline
Junior Member

Registered: 09/27/01
Posts: 26
Loc: Indiana

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#93458 - 07/02/03 12:16 PM Re: Fee Businesses can charge for Return Checks
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40960
Loc: Bloomington, IN
Good work Julie. I would never have found it, I kept searching on return check fees/charges. I would never have thought to search under "surcharge."

Thanks for the information.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#93459 - 07/02/03 05:02 PM Re: Fee Businesses can charge for Return Checks
Anonymous
Unregistered


Thanks for the Surcharge site to refer to. I read through it but am still not sure. How do you interpret it. It says $20 maximum plus an amount equal to the actual charge by the depository instiution for each returned check. I am not sure what that is saying. Can someone help me out.

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#93460 - 07/02/03 05:13 PM Re: Fee Businesses can charge for Return Checks
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40960
Loc: Bloomington, IN
The way I'm reading that is they can charge $20 plus the NSF fee the bank charges them. So, if the bank charges a $25 NSF fee, the holder of the check can charge $45.

I haven't had time to do any further research on this, but I'm wondering if this fee is adjusted every 2 years like the loan fees/amounts are?

I also have been unable to locate a cite that "governs" what the bank can charge for a NSF on the deposit side. The lending side is limited to $20 and that fee is not adjusted.

Do either of you have information on the bank's NSF charge limitation, if any? I don't normally deal with deposits so it takes be longer to track these down.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#93461 - 07/03/03 05:58 PM Re: Fee Businesses can charge for Return Checks
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40960
Loc: Bloomington, IN
From Mark Tarpey at the IN DFI:

We show IC 26-1-3 as being repealed several years ago. Depository institutions can charge NSF fees as part of their basic checking account/deposit agreement in any amount contracted for under IC 28-1-1-3.1. See also IC 26-2-7 and IC 34-4-30-1.

On a loan/retail sales consumer credit agreement all "creditors" including banks are limited to a maximum NSF fee as outlined in IC 24-4.5-2-202(1)(d) for retail sales and IC 24-4.5-3-202(1)(f) for loans in the amount not to exceed $20.

Merchants who accept checks that are returned insufficient are governed by IC 35-43-5-5 which provides for a charge that was the greater of $20 or 5%, but not more than $250. This was just changed by the legislature as of 7/1/03 to be $25. See above reference to other IC sections for additional remedies.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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