In addition to our NSF fee, we charge a daily overdraft fee of $5 for each day the account is overdrawn. We currently list the fee as a "Daily Overdraft Charge" on our fee schedule. On our statement it is listed as an "Overdraft Charge."

I believe we should describe it the same on both. And it should include "daily" to accurately discribe the fee (condition under which it may be imposed). However, when the account is overdrawn over a weekend we combine Fri - Sun and show a $15 overdraft charge, otherwise we list the charge each day. I believe the "daily" is still accurate. Any thoughts?

I would change the fee description in your core system's parameters so that it matches your TIS disclosure.

Thank you, that is my thought as well.

bb

You are charging on days that are not busines days for your bank? As a customer, I would take exception to that. I inadvertently overdraw my account Friday night and can't make a deposit until Monday, so you are going to charge me $15.00 additional because you are closed?

Yes, we do charge over the weekend - the customer is overdrawn on those days. However, I never thought about it they way you expressed it. Thanks for your perspective.

bb

We also charge a daily overdraft fee ($4) when the account is overdrawn over the weekend. We combine Fri-Sun and list the 3 days of daily fees together ($12).

Is it an issue if we group 3 days of fees together on the statement, even though we disclose it as a "daily" fee?

I've seen these described as 'continuous overdraft fee' rather than 'daily' but always beginning on the day after the overdraft occurs when no deposit is made; you begin the charge on the same day when you've already charged them your standard fee?; if you impose it on the date of the overdraft and don't disclose it 'per calendar day' I would agree that it doesn't jive with the disclosure.

We state "Daily NSF Fee" but then also state "per calender day after 1st day."

Still OK to call it "daily"?

IMHO, yes. But I would still take exception to being charged on the day of the overdraft.