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Exception Notice and OD Fees

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Question: 
A customer made a deposit in our ATM. We decided to place a hold. He was obviously kiting. The checks placed on hold were not returned NSF from the other bank. My understanding of Reg CC states that if we send a hold notice at a maximum of the next business day, we can charge NSF fees and do not need to refund them.
Answer: 

229.13 provides exceptions and denotes that these fees may be subject to refund, upon request.

Section 229.13 Exceptions.
The deposited check was paid by the paying bank.

Notwithstanding the foregoing, the depositary bank many assess an overdraft or returned check fee if it includes a notice concerning overdraft and returned check fees with the notice of exception required in paragraph (g) {which details Exception Notices} of this section and, when required, refunds any such fees upon the request of the customer. The notice must state that the customer may be entitled to a refund of overdraft or returned check fees that are assessed if the check subject to the exception is paid and how to obtain a refund.

First published on BankersOnline.com 10/03/05

First published on 10/03/2005

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