Why Does Busey Bank Charge a Returned Item Fee?

Forbes named Champaign, Ill.-based Busey Bank as one of the magazine’s 2019 Best-In-State Banks, but some of its customers say they may have been charged improper NSF fees or returned item fees.

Busey Bank operates in Illinois, Missouri, Indiana, and Florida and is worth approximately $9.75 billion. It touts itself as “trustworthy,” stating on its website that “[i]ntegrity is our leading guide as we work with customers and their financial affairs.” However, the bank may charge NSF fees as a penalty when customers overdraw their accounts.

Although these fees are legal, some consumers claim that banks and credit unions may be improperly assessing them with fees. In addition to Busey Bank, other banks and credit unions under investigation for this potentially predatory practice include Bancfirst, Bell Bank, Center Bank, CenterState Bank, Flagstar Bank, Glacier Bank Wings, Federal Credit Union, Midwest One, and NBT Bank.

What is a Returned Item Fee?

A returned item fee or non-sufficient funds (NSF) fee is a fee that is charged to a customer’s account when they attempt to write a check or withdraw cash when there is not enough money in their account to cover the transaction or transactions. When this happens, the bank may refuse to process the transaction, and also assess a fee against the customer’s account for attempting to spend money they do not have.

NSF fees are often assessed after a check is written without a high enough balance in the customer’s account to be able to cover it. This may be referred to as a bounced or bad check. In addition to the NSF fee often charged for bounced checks, many merchants and retailers may also charge their own fee when this occurs, making it an expensive mistake for a consumer.

NSF or returned item fees are different from overdraft fees. Overdraft fees are assessed when a customer has opted into overdraft protection and attempts to make a transaction without the appropriate amount of funds in their account. When this happens, the bank will cover the cost of the transaction as a loan to the customer, and assess a fee for the transaction.

According to WalletHub, returned item fees generally range between $27 and $35. Per Busey Bank’s fee schedule, the financial institution charges a $35 returned item fee. If a customer is assessed multiple inappropriate NSF fees, these fees quickly add up and can cost the customer hundreds of dollars.

When Are Returned Item Fees Improper?

Returned item fees may be assessed against a customer’s account for a variety of proper and improper reasons. Consumer advocates say that improper returned item fees often occur when the bank has assessed multiple fees for the same transaction. Charging a customer multiple NSF fees for a single transaction may be a deceptive or predatory practice.

Some consumers also claim that NSF fees are inherently predatory, as they essentially charge customers incredibly high interest rates for generally small account balance deficits.

How Can Consumers Avoid Returned Item Fees?

Consumers may be able to avoid NSF fees in several ways. Many banks and credit unions give customers the option to link checking accounts with another account such as a savings account. When two accounts are linked and the customer attempts to make a purchase from an account with an inadequate balance, the necessary funds may be pulled from the second account to cover the transaction. Although this may not result in returned item fees, consumers may be charged other fees for this service, such as overdraft fees.

Consumers may also be able to reduce their risk of being assessed an NSF fee by keeping track of their budgets and account balances independently. Mobile banking has become increasingly popular, allowing consumers to easily check their up-to-date balances via mobile apps, something that may stop them from committing to payments they can’t afford. 

Banks may also offer low account balance alerts. If the checking account balance falls below a certain threshold, the bank can send a notification, text message, or other communication to warn the consumer.

Customers who find that they are regularly assessed NSF fees may want to enroll in direct deposit, which automatically deposits paychecks on payday rather than waiting for a check to be processed.

Although it may be challenging, financial experts also recommend keeping a “buffer” of about $100 in their account to cushion a consumer’s budget in the case of unexpected expenses.

If NSF fees are unavoidable, consumers should transfer money into their account as soon as possible to put it back in the positive. In some cases, banks will charge additional fees for having a negative account balance for multiple days. The same may apply to banks charging multiple NSF fees on the same transaction by trying to process it again, resulting in subsequent fees.

If you were assessed multiple returned items or NSF fees for the same transaction, you may be eligible to hire a qualified attorney and file a class action lawsuit against your bank or credit union. Banks and credit unions that may be charging inappropriate NSF fees include Bancfirst, Bell Bank, Busey Bank, Center Bank, CenterState Bank, Flagstar Bank, Glacier Bank Wings, Federal Credit Union, Midwest One, and NBT Bank.

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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