I'm researching whether or not the bank can charge a daily overdraft fee in addition to the NSF fee it charges. This Q & A on BOL states that TX law prohibits charging both, but I can't find where it says that. Do any of you know? I know of at least one bank in our area who is charging this fee - perhaps they can because they are a national bank?

Thanks for your help!

There is no bright line test on this. If you do a search in the Texas forum (+daily +overdraft) you will see much discussion back into 2002. There is some court precedent, but it comes down to talking to your own legal counsel as someone may eventually be a test case in the courts.

Thank you, Randy! I did a search before I posted, but I think I accidently left the search as "weeks" rather than "years." That made a big difference!

I have heard of some banks charging a fee for being OD. The charge isn't based on the item, but the account status each day. It is a fine line I wouldn't want to cross.

The case that is often cited here is Tony's Tortilla Factory where it was established that a per item handling charge was interest. A daily fee may get defined as interest, and that means usury calculations and lots and lots of Reg Z disclosures.