|
Question: The bank charges noncustomers a fee for cashing checks on us. We are planning on increasing that fee. Is there any disclosure requirement? Reg DD compliance?
Answer: No. First, this type of fee does not "relate to an account." Therefore, it is not required to be disclosed by either Reg DD or the State Banking Code (section 34.303). Thus, changing it does not trigger the usual 30 day advance notice (found in Reg DD and state law) required before increasing (or adding) a fee.
The Texas Legislature attempted to prevent "on us" fees by requiring checks to be paid "at par." However, several large banks successfully sued, claiming that federal law preempted this attempt by the state to indirectly regulate account fees.
This section of Texas law (sec. 4.112, Business & Commerce Code) has not been repealed and still appears in the statutes.
| 
