What is a non sufficient fund fee and when must you pay it?

A non sufficient fund fee (NSF) is a fee assessed against a customer’s checking account when they attempt to make a purchase without having a sufficient amount of money in their account to cover the transaction. When this happens, the bank will deny the transaction and charge a fee for the attempt.

If the customer attempting to make the purchase has a second account with the same bank containing enough money to cover the transaction, the bank may pull money from that account to cover the cost of the purchase. However, if there is no second account, the bank will simply deny the purchase and assess a fee.

NSF fees, also known as returned item fees, are different from the more well-known overdraft fees. Overdraft fees are charged to consumers who belong to their bank’s overdraft protection service when their account dips below zero due to a transaction. The bank will cover the transaction and then assess the consumer an overdraft fee.

Essentially, the bank has loaned the consumer enough money to cover the transaction, and will expect to be paid back both the transaction’s cost and the cost of the overdraft fee.

When an NSF fee is charged, the transaction does not go through, but the bank charges a fee for the attempt itself.

When are NSF fees improper?

According to consumers, some banks may be charging customers inappropriate NSF fees. While NSF fees generally occur one time after a customer attempts to make a purchase and is denied, some consumers claim that their attempted transactions have been denied multiple times, resulting in a non sufficient fund fee for each attempt. This may happen when a retailer tries to process a single transaction multiple times after initially being rejected. Although only one transaction has been attempted, multiple NSF fees may be assessed for the same denied purchase.

Customers of banks including Bancfirst, Bell Bank, Busey Bank, Center Bank, CenterState Bank, Flagstar Bank, Glacier Bank, Wings Federal Credit Union, Midwest One, NBT Bank, and more may have been affected by these potentially misleading or predatory NSF fee practices.

Since being charged multiple NSF fees for a single transaction quickly adds up, consumers are advised to check their bank statements for evidence of improper NSF fees.

How much are NSF fees?

NSF fees are generally about $35 apiece, according to ValuePenguin. In addition to the non sufficient fund fee assessed by the customer’s bank, some merchants and retailers may also assess a fee for the bad check or denied transaction. These multiple fees may quickly add up to tens or hundreds of dollars in charges for consumers who are already short on funds.

How can consumers avoid NSF fees?

There are several ways consumers can try to avoid non sufficient fund fees. One way to potentially protect yourself is to keep records of the funds in your account, rather than relying on the amount stated on your paper or online bank statements.

By keeping track of your regular spending and recurrent or monthly automated charges, you may be able to manage your budget and prevent accidentally withdrawing more money than you have in your account. Another safeguard is keeping additional emergency funds in your account as a financial cushion for accidental overdrafts.

Filing an NSF fee lawsuit

More and more customers are speaking up about their experiences with unfair or predatory bank fees, including NSF fees, in some cases even pursuing litigation.

If you have been charged multiple NSF fees for the same denied transaction, or have otherwise been hit with unfair NSF fees, you may be eligible to hire an experienced attorney and join a non sufficient fund fee lawsuit investigation. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a free NSF fee class action lawsuit investigation

You may qualify to join this NSF fee class action lawsuit investigation if you were unfairly charged NSF fees by one of these banks:

• Bancfirst
• Bell Bank
• Busey Bank
• Center Bank
• CenterState Bank
• Flagstar Bank
• Glacier Bank Wings Federal Credit Union
• Hudson Valley Credit Union
• Midwest One
• NBT Bank

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