Our bank does not have an overdraft protection program, however, we do, as a courtesy to our customers, make pay or return decisions on a case-by-case basis. We charge a fee for NSF items that are paid and a fee for NSF items that we return, however, the fee we charge for NSF paid items is $5 more than the fee for NSF returned items. Because we charge a larger fee for NSF paid items, is this fee considered a finance charge under Reg. Z?
Is it required that we send notification of overdrafts that take place. We did make note of it on our quarterly statement that we would no longer doing this. Are we in compliance?
Since its introduction several years ago, the regulatory agencies have expressed serious concerns about bounce protection programs which, unlike traditional overdraft programs, can lead consumers i
A family friend made a deposit of multiple checks. He did not have a pre-encoded deposit slip, but did fill out the deposit slip completely otherwise. The teller receipted the transaction correctly, but encoded a completely different account number on the transaction. That account number belonged to the depositor's mother. (Even though the two are not on accounts together.) The error resulted in two checks being returned, which caused additional late fees and charges to the depositor. Since the transaction was correctly receipted the depositor was unaware of the problem until he received NSF notices. What is the liability of the bank to correct this problem? And what is the recourse of the depositor?
Question: In the compliance area of BankersOnline I read an article titled "Refer to Maker Revisited."
We have a bank that returns checks that are "account closed" as "NSF". I have looked through several publications and cannot find a referral to this issue. What can I cite to make them correctly show the reasons for returning the items?
We have a procedure to review unusual activity in employee's accounts on a regular basis. In addition, if we have a suspicion regarding a teller, we have reviewed account activity for that teller. Are there any privacy rules which would restrict our ability to review our employee's account information? Also, is there any consent required by the employee when they begin employment?
If a customer wrote a check to a 3rd party and it was returned to us as NSF, does Reg Z bar us from adding the amount of that item to the balance owed on their loan? This wouldn't be an overdraft line of credit type, but a signature loan.
When opening a business account, if we find that one of the signers is on ChexSystems due to NSF abuse on his/her personal account, are we required to open the account? Can we disclose the information to the owner of the business? What we do currently is refuse to open the account and notify the owner of the account that one of the signers has a record on ChexSystems, but I'm not sure if that is the appropriate way to handle this situation.
Payday lending has become an increasingly popular product. And the more popular it gets, the more it gets talked about. The latest word is from the FDIC.