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Max Number on Overdraft Fees Charge

We have a new overdraft policy that went into affect on 4/1/13. We do not offer overdraft protection. We are charging $30.00 per item for presentment or representment. What is the max number of OD fees that should be charged? I think anything over 4 is excessive. I would like to change our policy to have a cap of 4. What are your thoughts?

Answer by Jim Bedsole: Are we talking per day? Per month? Lifetime? It makes a difference.


Answer by John Burnett: Unless there is a Federal rule (there isn't -- YET!) capping the number of times you can assess an OD fee per day/week/month/year or a State rule on the same question, any cap you select is a pricing/fairness factor that your institution needs to determine based on its business practices, etc. This is generally a business judgment call, and you certainly don't want to get your bank accused of price collusion with other bankers to the detriment of the public.

First published on 7/15/13

First published on 07/15/2013

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