My bank is in the process of implementing a permissive overdraft protection plan. I have given an opinion that this plan is not allowable for our 18/65 accounts but have been asked to check this out again. Our marketing person says that in reality the checks are first "refused" by us for paynment and then a decision is made to pay them against a negative balance in the account. As a result she feels it is ok to charge the $5 fee allowed to be charged for NSF checks on a 18/65 account. Any thoughts would be greatfully appreciated.

With all due respect to your marketing person, I think you're asking for trouble here. If you "refuse" payment, you bounce a check. You don't "refuse" payment on something you're paying against an overdraft line, formal or informal. As much as I abhor the language of the statute, our legislature hasn't seen fit to change it. I don't think you can charge a qualifying account for the privilege of going overdrawn. Period.

Thanks John! I thought for a while that I was the only one who was concerned over this.