Has anyone run across this scenario...
Over a period of time a bank employee has refunded nsf fees on account owned by her and her mother. Really it's her mother's account but employee is a signer as well. We know her mother receives a SS check each month. Could we now go back and charge this account for those nsf fees ($500)?

I say no, however I would terminate the employee. You probably have internal control that would prohibit someone waiving fees on an account of their own, family member, or close friend.

Clarification:
Mother is owner of the account to which bank is considering charging and daughter (recently dismissed employee) is an authorized signer. Any help would be appreciated!

I still do not think you can now impose this liability on the mother. If she had waived these fees on an account she was not a signer on you could not now go back. I would ask legal for an opinion.

Depending on the cost of counsel, you could easily run up more than this amount in their costs. I wouldn't go back and impose the fees blanketly. You'd have have to look at each instance and see why the fees were imposed to ensure it wasn't a truly refundable fee. Again, that research may be costly.

I'd likely blow this off as a lesson learned, firm up your internal controls and be glad you didn't lose more.

I think you're right. Costs could run up and it would be time consuming for the amount of money recovered. Thanks

I agree with everyone else too. I would not go back and charge the fees. I'm surprised no one had noticed this reviewing the NSF refunds.