Topic: Insufficient Funds Fees
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How should we disclose a reclearing fee (charged when we send an item back to the payor bank a second time)?
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The Truth in Savings Act (TISA) and Regulation DD require disclosure of a reclearing fee, along with any other fee that might be imposed in connection with the account. 12 CFR 1030.4(b)(4). You should include the amount of the fee or an explanation of how the fee amount will be determined. Id. However, we note…
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Is there a cap on returned check fees under Illinois law?
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Section 5e of the Banking Act states that “[n]otwithstanding the provisions of any other law in connection with extensions of credit” banks may charge any fees, provided that the bank sets the fees based on its “prudent business judgment and safe and sound operating standards.” 205 ILCS 5/5e. There are some laws unrelated to extensions…
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We got a warning from LaserPro stating that we cannot charge an insufficient funds (NSF) fee of more than $25 for bounced loan payments, but would this apply to mortgage loans?
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We do not believe that there are any restrictions on charging fees for a loan secured by a mortgage on real estate, provided that the customer contracted to pay such fees in your loan agreement. Section 4(1) of the Illinois Interest Act states that “it is lawful to charge, contract for, and receive any rate…