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#1995396 - 02/11/15 07:38 PM 1026.52 (CARD Act limitations on fees)
#12 Offline
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1026.52(b)(2)(ii)states that "A card issuer must not impose more than one fee for violating the terms or other requirements of a credit card account under an open-end (not home-secured) consumer credit plan based on a single event or transaction. A card issuer may, at its option, comply with this prohibition by imposing no more than one fee for violating the terms or other requirements of an account during a billing cycle."

The commentary goes on to explain that this means you can't charge both a return item fee and a late fee for the same transaction.

Here's my question: Can we charge multiple return item fees in one billing cycle? For example:

10/5 ACH $275 payment received
10/6 ACH $260 payment recieved
10/9 ACH $250 payment received
10/9 $275 ACH returned
10/10 $260 ACH returned
10/16 $250 ACH returned

Can we charge 3 returned payment fees? Thanks in advance for your help!
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#1995418 - 02/11/15 08:30 PM Re: 1026.52 (CARD Act limitations on fees) #12
John Burnett Offline
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John Burnett
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Cape Cod
And what, pray tell, would be the reason for returning those ACH payments? Could it be that the cardholder made the payments in the belief that you could accept ACH credits to the credit card account, and that belief turned out to be incorrect?

Technically, I think, these would be separate incidents that would permit the assessment of separate fees. But usually the return items would be bounced (returned) checks. In your example, your bank is the party making the decision to return.
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