We post ACH at 6:00 a.m. if a customer's ACH is negative it will be returned. My question involves when the customer makes an online deposit prior to the item actually being returned. The money is then available in the account to pay the item. Are we still able to return it NSF even though a deposit has been made into the account?
Are financial institutions allowed to implement an ACH debit policy that limits the number of ACH debits once the account has gone negative, in an effort to prevent substantial ACH NSF fees and potential losses?
We have an auditor questioning Regulation CC and its relation to Subpart C 229.33(d). If we have a loan customer who makes a check payable to our bank for payment, and the paying bank says its being returned for NSF, are we required to send our loan customer written notice of nonpayment under this section of the regulation?
We received an IRS Levy last week, and our customer had $800 available at the time the levy was received. We placed a hold on the funds. Two days later we received notice that a $3,000 check he deposited was being returned for NSF. This meant true account balance available would have been ($2,200) at the time of levy. When we received the $3,000 check back, we debited his account, and he was negative. He has since deposited cash and has $100 available (including the $800 hold for levy). Checks are now presenting that we could pay if the $800 hold was not there. What am I obligated to pay the IRS now?
We are a small community bank that does not offer an overdraft program. We elected to opt out of the Reg E amendment effective July 1, 2010 and are paying one time debit card transactions that overdraw accounts without charging an NSF fee. Obviously we are losing income because of this. We are wondering if we could charge a reactivation fee on the debit cards that have overdrawn for the second time. Example: customer overdraws account with one time debit card transaction. We suspend the card. The customer deposits and we unsuspend. The customer does it again, we suspend, they deposit and we charge a reactivation fee to reactivate the card the second time. Is this ok? If not, can we charge an annual fee on debit cards?
NSF & OD notices are not available until 2pm, but our post office closes at noon for Christmas Eve. What is our requirement on timely notification of OD or NSF?
If a $500.00 liability is imposed on a $760.69 claim and there were some NSF and transfer fess associated, are we required to reverse those fees?
Is there anything in regulation that prohibits the charging of an NSF fee or continuous overdraft fee if the overdraft was caused by a bank fee (ie monthly service charge)?
Our Bank is located in N.J.. This pertains to our own employees' checking accounts. We would like to limit our employees to a total of 3 overdrafts per year, after which they would need to close their accounts. Are we in any compliance situation if we implement this? My other question is not employee related. We have one business owner that is constantly overdrawn. We have put an automated cap on her account to only charge her 1 overdraft fee regardless of how many checks are present against insufficient funds. We normally charge per NSF check. We do not offer this to all customers nor have we advertised this. Are we in compliance with this?
What are some specific reasons for a Reg CC hold? Could the number of NSF fees on an account be a reason?