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Home >> Accounts >> Checking Accounts
Can Bank Return Checks?
If a debit (check, EFT, ACH) hits my account and it does not have sufficient funds, can I require that the bank return the check rather than paying it? I am a 40 year customer and have only had less than six or seven NSF checks, but do not want the bank to pay and thus make me obligated to it. I would rather that the bank return the check. Also, if bank pays an NSF check, is this not a loan to me and, if so, are there other regs that must be taken into consideration?
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 Many banks have opt out provisions in their overdraft services, and will honor a customer's request that no overdrawn items be paid on their accounts. You should ask your bank directly about its policy on opt-outs.
Be aware, however, that an opt out is usually an all or nothing decision. You aren't usually permitted to pick and choose the types of payments the bank will pay or not. For instance, if a checkbook error results in insufficient funds in your account when an insurance premium ACH charge is presented, and you have opted out of the payment of overdrafts, the bank will likely return the ACH item, and that could result in a lapse of insurance coverage.
To be sure, if the bank were to pay an item that overdraws your account, you would be liable to the bank to repay the overdraft, plus its overdraft fee. A similar fee is likely to be charged even if the bank does not pay the item. The bank's policy would dictate how much time you would have to take care of the overdraft. There are regulations that a bank must adhere to in managing their overdraft services, and those regulations may be getting stricter.
Published on BankingQuestions.com 8/18/08
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