Laura Pennington  |  February 12, 2020

Category: Fees

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Insufficient funds or non-sufficient funds refers to a checking account that did not have enough money inside it to cover transactions that were attempted to be processed. If a bank gets a check that is written on an account with not enough funds inside, that bank can block or decline payment and then put an NSF fee on the account.

Many banks use this process to recover significant and hefty fees when a transaction is attempted.

Can I Block NSF Fees?

While you can choose whether or not to opt-in to overdraft fees, an NSF fee can still be charged on your bank account if you bounce a check. Most banks will provide consumers with information about these kinds of charges through an information packet when the customer opens their account.

Does MidWest One Bank Charge an NSF Fee?

Banks are well within their legal rights to charge an NSF fee, although increasing consumers have been asking that these financial institutions be held accountable for illegal or unreasonable charging of NSF fees.

Many organizations, such as MidWest One Bank, have a consumer service fee schedule that a banking customer can review. According to the consumer’s service fee schedule issued by MidWest One Bank, a non-sufficient funds fee of $35 per item can be charged.

However, this is a maximum charge of $175 per day and the company states that there will be no daily overdraft charges with balances of $5 or less.

Are NSF Fees Legal?

It is not illegal for banks to charge an NSF fee, but when more than one of these fees is charged on a single transaction, consumers might be eligible to file a lawsuit. Being hit with multiple NSF fees on the same charge can add up quickly.

In some cases, the bank might be willing to reverse these fees for certain customers, but this is not always guaranteed. Contacting the bank right away is the best approach to determine how to handle an NSF fee.

What Is the Difference Between Overdraft Charges and Non-Sufficient Funds Fees?

It can be very confusing for customers to recognize the difference between an overdraft fee and a non-sufficient funds fee. Many consumers think that these fees are one and the same and plenty of financial institutions classify and treat them that way, but there are technical differences.

An overdraft fee relates to a situation in which a charge is attempted on a bank account that does not have enough funds inside to cover it, but the bank then covers that overdraft amount. This can also be referred to as a courtesy pay fee for the courtesy of the bank covering the additional amount.

A non-sufficient funds fee, however, is not a debit that is paid out and this type of transaction can be referred to as a bounced check. This means that the bank does not extend the courtesy of paying the overdraft amount while still charging the customer fee. When multiple NSF fees are levied on the same transaction, this can get very expensive and difficult for a consumer to fix.

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

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One thought on Why Does MidWestOne Bank Charge an NSF Fee?

  1. Carold says:

    Please add Midfirst Bank. They are still charging extended overdraft fees.

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