At our Bank we offer bounce protection up to $500 overdrawn on employee accounts. So the employee can't get in trouble (we have a policy that says employees must properly manage their finances) if they are overdrawn up to $500. Sometimes I am seeing employee overdraft fees reversed and that is noticed as a red flag in our Bank. I'm trying to determine what is a reasonable amount of fees to be reversed.

At your Banks, what are the guidelines for reversing overdraft fees for employee accounts? I would think you wouldn't want to give preferential treatment, but you wouldn't want to treat them differently than the average customer. Does it have to be approved by someone with a certain level of authority?

Thanks!

We don't reverse OD fees on employee accounts. They are eligible for overdraft protection the same as any other customer, but no fee refunds.

Also make sure they are not reversing the fees for executive officer's and director's. That's a no-no.

I think any waiver of NSF fees for an employee should have to be approved by the CEO...

Ouch. My husband overdrew our account when I was in the hospital in Dec. We had money in another account, but he doesn't handle our accounts, so he didn't know he needed to move it. I'm glad I didn't have to have the blessing of the CEO for the fees to be reversed. Our branch managers don't have the authority, it has to be approved regionally.

Seriously though, I know what you mean. There should be clear authority and those with the authority should be properly trained.

Our employee manual states the number of times we can be overdrawn and have fees refunded. It also states the action that will/can be taken against an employee who does not manage their account. The obvious problem being that you must treat every employee the same, (officers and directors are a seperate issue), We found that if it was in the employee handbook, and the employee signs for their handbook, they cannot say they didn't know the policy!

Our policy is that any requests for refunds have to go through the Senior VP of HR. He then instructs deposit services to refund if he okays. I review all refunds so if I see a refund to an employee that I didn't know about I report to him and the Sr officer over their area.
We started this mainly because we noticed managers having their employees refund fees for them personally or tellers standing next to each other on the line reversing fees on each other. It really puts the employee being asked to refund in an unpleasant situation.
HR is also notified at the time the OD occurs.

Sorry, Brenda, that was an attempt at humor.

My real opinion is that employee overdraft fees should not be waived at all. Mine wasn't...

There is a school of thought that the employee should suffer the same consequences and pay the same fees (other perhaps than a monthly maintenance fee) when things go wrong on their account. How else can the employee appreciate the horror of a customer who has just seen a simple arithmetic slip result in a $100 overdraft that turns into $500 in bounced check and other fees?