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Home >> My Bank Said ...
Does Bank Send Fees to Federal Government?
Under Section 204.2(d)(2) of Regulation D of the Federal Reserve Board, I do not see anywhere in that reg that it requires banks to charge me a fee as a customer of that bank. My bank is telling me that the money they penalized me for going over six transactions is sent to the government as a fee to them. Is this true, required or accurate?
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 That the bank sends those fees to the government is completely untrue. The bank employee providing that information is, shall we say, misinformed.
The regulation requires the bank to limit by contract certain transactions and transfers from savings accounts and money market deposit accounts, to six per calendar month or monthly statement period. The regulation neither requires a bank to impose fees as part of its controls on customer activity, nor prohibits them.
Typical bank actions when a customer's transactions exceed the limits include reminders of the limits, and when the customer fails to adhere to the limits more than occasionally, to restrict the customer's transfer capabilities, cancel check-writing abilities, reclassify the account to become a checking or NOW account, or close it. Whether or not a bank imposes a fee for exceeding a given number of transactions is not a matter covered by the regulation.
Published on BankingQuestions.com 11/10/10
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