And if any critical information is missing on the check, such as a signature, the bank might reject it then, too. This is generally against state law. Whether you intended to write a bad check or not, having a check returned can cause you trouble. Here are some of the problems you may encounter.
Your bank may charge nonsufficient funds, or NSF, fees and take them directly out of your account, even if it causes your balance to dip below zero. The bank may also decide to close your account, which could hurt your chances of joining another bank or credit union.
The payee may also take other action, such as suspending a service. But they may report bounced checks to specialty reporting agencies, such as Early Warning Services and ChexSystems. These agencies specialize in checking information. In addition, if the potentially forged check is indicative of criminal activity, the appropriate law enforcement agency may be consulted as well.
Texas law regarding forged documents, specifically fiduciary instruments such as checks, states in Section In the event that you do not have enough money in your account to pay for the purchase, your check will be returned.
A check returned for insufficient funds is usually marked as such. Your bank will also charge fees to your account for the returned check. Texas law provides for stiff penalties for checks returned for insufficient funds. Pursuant to Section Either way, the fee assessed by the bank reduces the available account balance. You can avoid NSF fees by properly budgeting: Never intentionally write a check or make a payment for more than your current balance, even if an infusion of fresh cash is imminent.
It also helps to keep a cushion—contingency amounts in your checking accounts—so that you do not inadvertently overdraw. In addition, you should carefully monitor your account balance, looking out for debit card transactions and automated payments, which are easy to forget and hence, common causes of overdrafts.
Many banks now allow you to set up low-balance alerts: You get a text or email notification when the funds in your account drop below a figure you designate. That can help you keep track of how much money is currently available, and you can adjust your spending accordingly. If you have more than one account at the bank—say, a checking and a savings account—you can link them so the money will automatically move from one to the other to cover withdrawals.
Many banks also offer overdraft lines of credit. This is a special product that you can apply for to cover any issues with insufficient funds. An overdraft line of credit requires you to complete a credit application, which considers your credit score and credit profile in determining approval. This account can be linked to cover any transactions made with insufficient funds in the primary account. It can also be used for cash advances to your checking account.
In , the U. Under the laws, consumers can opt for overdraft protection through their banks in fact, banks are required to let them choose, instead of automatically enrolling them in the service. Opting for overdraft protection affects credit and debit card transactions in particular. Like any banking service, it can pay to read the fine print and study the pros and cons. Complaints about NSF fees are nothing new, as the bank reform legislation suggests.
There have been numerous lawsuits over the years; the s, in particular, have seen an increase in class action lawsuits challenging the manner in which financial institutions charge overdraft and non-sufficient funds fees. These lawsuits don't try to deem NSFs illegal; rather, they allege breach of contract and unjust enrichment in the way they're applied. Different specific practices that have been cited include:. Reordering transactions: Financial institutions processing debits to consumer accounts in a way to maximize overdraft fees—deducting the largest first, rather than in chronological order.
This strategy triggers negative balances and more frequent overdraft fees. Authorize positive, settle negative: Financial institutions authorizing transactions at a time when customers had sufficient funds in their accounts to cover them, or promising to set aside funds—and then charging fees because the accounts had insufficient funds later, at the actual time of posting and settlement.
Single transaction, multiple fees: Financial institutions assess more than one NSF fee on a single item or transaction because the payment request is automatically re-submitted repeatedly by the creditor, not necessarily with the bank customer's knowledge.
Ostensibly, banks charge NSF fees for the cost and inconvenience of having to return declined checks. In reality, banks often charge an NSF fee because it makes them money. Yes, NSF fees are legal—on bounced checks, at least. Generally, they can't be charged on debit card transactions or ATM withdrawals. Overall, the U. The Truth in Lending Act does require banks to disclose their fees to customers when they open an account.
The collective amount of overdraft-related fees collected by major U. Bank policies vary, but an NSF fee can often be waived after the fact—especially if it's the first time, or the first time in a long time, that you've gotten one. Call the bank's customer service line, and request a refund for a fee you've been slapped with—the sooner, the better. Username Please enter your Username. Password Please enter your Password. Forgot password? Don't have an account? Sign in via your Institution.
You could not be signed in, please check and try again.
0コメント