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Daily Limit On NSF Charges?
byAndy Zavoina and John Burnett, BOL Gurus
Question: Is there a daily limit on the number of NSF fees we can charge against a customer's account? For example, if they have 10 NSF checks in one day, can we charge 10 fees?
Answer by Andy Zavoina:
BIO AND CONTACT INFO
Your account disclosures and terms should indicate that you will charge a per-item fee. You could have a cap and simply return items if you choose without any fee. There is no Federal law requiring or prohibiting this.
Answer by John Burnett:
BIO AND CONTACT INFO
There may be state law issues, however. Some states have capped the number or amount that can be charged on NSF fees, and you should check to see if your bank might be subject to such a rule.
While you may have the right to do this, be aware that "piling on" these fees -- if you're hitting them significantly for each NSF -- might make your bank and banks in general a target for consumer groups and state legislators who listen to them. I'm all in favor of fee income for banks, but does your bank want to be portrayed as "hoggish"?
First published on BankersOnline.com 08/11/03
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