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#46577 - 12/03/02 02:47 PM savings account negative balances
Pale Rider Offline
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I have just learned our retail ops folks have instituted a fee similar to NSF fees for a negative balance in savings accounts. Any bank out there doing this ? What are the disclosures to consider ? Thanks for you input in advance.
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#46578 - 12/03/02 02:49 PM Re: savings account negative balances
Andy_Z Online
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TISA will require that the fee be disclosed. Short of any state prohibition it is allowed.
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#46579 - 12/03/02 04:25 PM Re: savings account negative balances
Pale Rider Offline
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Thanks for responding Andy, one more point of clarification. We have provided the 30 day notice, but since these are passbook savings accounts, what kind of periodic statements are necessary since by definition savings accounts do not have periodic statements ?
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Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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#46580 - 12/03/02 04:39 PM Re: savings account negative balances
Andy_Z Online
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These fees will not effect the need for a new periodic statement, but they should be shown on the statement when produced so as to track back to the disclosed fee you described in your fee schedule. Reg. E will dictate if a statement is needed.

I haven't worked with passbooks since I picked up soda bottles at Surfside Beach to collect the deposits, but I would assume you'd update passbooks with the fees charged as well, if applicable.

Just as there is no requirement to send a DDA NSF notice, the same would apply here. But certainly it is a customer service issue and sending notices and periodic statements will reduce your liability in the event there are unauthorized withdrawals.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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