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30 Day Notice for Foreign Check Exchange?

Answered by: 
John Burnett

Question: 
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?
Answer: 

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

Filed under: 
Compliance
Filed under compliance as: 
Check Cash

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