Skip to content

Max Number on Overdraft Fees Charge

Question: 
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: 

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

Answer: 

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 BankersOnline.com 7/15/13

First published on 07/15/2013

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics