Question: Is there a limit that a bank can charge for processing non-sufficient items? Question: Are overdraft fees considered interest and subject to usury? Overdraft (OD) fees are not calculated as interest.
OD fees are associated with a “bounced-check” or “nonsufficient funds”.
In most cases, the recipient can deposit the check at any time.
Unless you set things up correctly with your bank, the bank is free to pay funds out of your account before the date shown on your check.
As a result, the transaction is not considered as issuance of a "bad check" since the creditor released the merchandise or performed the service in reliance of the check writer's promise to pay at some later date rather than in reliance of the check's negotiability.
Therefore, the protections offered to creditors under the various "bad check" laws may not apply.
Some Texas financial institutions may participate in a "thumb-printing" program, that requires non-account holders to apply their thumbprint in clear ink next to their endorsement when cashing a check in a bank where they do not have an account.One of the myths that somehow refuses to go away is the myth that post-dated checks are "illegal." They are not.There is nothing illegal, inappropriate, unlawful, unethical, unprofessional, or unconscionable about a creditor asking a customer to issue a post dated check, nor is there any reason a customer cannot issue one or a series of post dated checks to clear a past due balance.Question: Can a bank charge a check cashing fee to non-customers? The Department issued an August 31, 2001 press release regarding this matter.Since then, the court ruled that Texas law was not enforceable, therefore, financial institutions are allowed to continue charging a check cashing fee. However, Business and Commerce Code Section 3.506 (b) limits the fee amount to .00 that any non-bank check holder or retailer can charge for a dishonored check.A postdated check is a check with a future date written on it. Two potential reasons for this include: No fraud allowed: There’s no law making postdated checks illegal.