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30 Day Notice for Foreign Check Exchange?

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Foreign checks deposited into a customer account have been sent previously to another bank. We just received notice from that bank that we will be charged $51 fee for the exchange. We have consumer and business accounts we have received a foreign check on. Do we have to give our customer a 30 day notice about the charge? We give our customers immediate credit at this time so we would have to charge the account. Also, can we charge them a larger amount than what we are being charged by the other bank?

With respect to consumer accounts, if you accept those checks for deposit and then charge customers for the fee, you should send these customers a 30-day notice of the increase. During the 30-day delay period, if you accept a check for deposit, you'll have to absorb the difference in fees.

For business accounts, any notice period is a matter that should be covered in the deposit account agreement.

Unless there is a state law or regulation limiting such fees, there's nothing to my knowledge preventing you from up-charging for foreign check collection, if you make proper disclosures.

First published on 11/10/2014

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