Are banks required to charge fees for overdrafts? If so, who determines the amount, and can they refund overdraft charges back to you or is it against the law to do so?
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Although there may be a few states that restrict the imposition of overdraft charges, those restrictions do not usually apply to federally-chartered banks. There are currently no federal fee restrictions. In other words, it's a bank management decision. The same is true of refunds.
As of April 9, 2009, there has been a federal regulatory proposal floated that would impose either an opt-in or opt-out on bank overdraft plans. It's premature to discuss how it would work, since the proposal includes at least eight different versions of what the final rule might look like, and there is no guarantee that there will be a final rule issued.
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Although there may be a few states that restrict the imposition of overdraft charges, those restrictions do not usually apply to federally-chartered banks. There are currently no federal fee restrictions. In other words, it's a bank management decision. The same is true of refunds.