Fee Limit in Reg D?

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Question:

Is there a limit or guideline to the amount we can charge per item that exceeds the regulation transaction limit on savings accounts?

Answer:

There is no limit on this fee unless it is state-imposed. And one must be cautious as you do your research so as to not be accused of "price fixing." For national banks I would refer you to 12 CFR Section 7.4002:

"National bank charges. (b) Considerations. (1) All charges and fees should be arrived at by each bank on a competitive basis and not on the basis of any agreement, arrangement, undertaking, understanding, or discussion with other banks or their officers."

Also, recognize that the imposition of a fee for excessive transactions is not a substitute for a monitoring program and corrective actions when excessive transactions occur.

[Editors Note:As of 7/2/09, the separate limit of three per month for checks, POS debit card transactions, etc., has been eliminated, and those transactions are now only subject to the 6/month limit that applies to other restricted transfers and withdrawals.]

First published on BankersOnline.com 11/15/04