Why Does Center Bank Charge a Returned Item Fee?

Center Bank may charge returned item fees, or NSF fees, to consumers who lack the funds to cover checks or other transactions.

What is Center Bank?

Center Bank was founded in 2000 on the concept of community banking. According to the bank’s website, Center aims to deliver “best in class service to our specific customer niche.” Their core values include customer first, common-sense solutions, teamwork, community, and continuous improvement. By providing “updated and relevant banking services to customers delivered with a friendly and local feel,” Center hopes to show their customers how they can “Enjoy banking again.”

What is a Returned Item Fee?

A returned item fee, also referred to as a non-sufficient funds fee (NSF fee), may be charged if a consumer writes a check that they lack the funds to cover, also called a bounced check. These fees may also be charged when consumers set up a bill payment using their bank information and then lack the funds to cover it.

Each bank or credit union will set its own fee rates, but these fees are limited by state laws. In certain states, returned item fees are limited to a flat number between $20 and $40. Other states have different rules, such as Idaho which allows $20 or the amount of the item/check – whichever is less. In other states, the maximum returned item fee depends on the size of the check or transaction which bounced.

For example, in Florida, the maximum returned item fee is $25 for items up to $50, $30 for items up to $300, $40 for items up to $800, and 5 percent of the item if the total is over $800. Similarly, Ohio allows for up to $30 for items up to $300 and 10 percent of the item for all totals over $300.

It’s important to note that returned item fees are not the same as overdraft fees. Overdraft fees are charged when a bank allows an account to go negative or moves money from another location to cover a transaction. These fees are only allowed to be charged when a consumer has opted into overdraft protection, whereas a bank can charge their consumers returned item fees without them having to opt into a special program.

Why Do Banks Charge a Returned Item Fee?

Consumers may be charged returned item fees, listed as insufficient funds fees in the Center Bank fee schedule if they lack the funds to cover a check or other bill transaction. These fees are a penalty on top of the cost to cover the charge itself.  According to Center Bank, their insufficient fund fees are set at $30.

Unfortunately, some banks may charge deceptive returned item fees.

Consumers have complained that they were charged multiple insufficient fund fees on a single transaction, quickly adding up to $100 or more depending on the bank or credit union.

Attorneys are looking into a variety of banks and credit unions to see if they are charging deceptive returned item fees. Among those being investigated are Bancfirst, Bell Bank, Busey Bank, Center Bank, CenterState Bank, Flagstar Bank, Glacier Bank, Wings Federal Credit Union, Midwest One, and NBT Bank. Consumers who have been charged deceptive NSF fees by these or other institutions may be able to file a lawsuit for recompense.

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

Learn More