MO state regulation 408.653 clearly defines the amount of overdraft charges that may be imposed on checks presented for payment on an overdrawn account. We are considering a negative balance charge for each day that the account remains in a negative balance status starting the third day after the initial overdraft. Our processing company assures us this is legal and since this is not addressed in the reg, can we procede?

We are a Missouri Bank and charge a daily inactive overdraft fee of $6.97 each day that an account is OD and no transactions are presented for payment. This includes weekends and holidays. The fee is disclosed at account opening and on annually mailed fee schedules. Our procedure has been reviewed by the Missouri Division of Finance and has been in operation for several years.