Legal Question in Banking Law in Maryland

Limits on Banking Fees

I believe that I heard somewhere that there are limits on the amounts banks can charge for various fees, i.e., overdraft fees, NSF fees, Stop Payment fees, etc. First, is there some law or statute that regulates these fees imposed by banking institutions, and if so, what are the limits? What determines how much a bank can charge for various services or banking infringements? If a bank is overcharging, what can I do? For some reason, I heard that the limit is $25, but I could be dreaming.

Thanks


Asked on 3/04/02, 1:35 pm

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Limits on Banking Fees

As your question involves two jusridictions, State regulatory definitions of usurious bank action may vary between Maryland and Georgia. Federal law is set out in 18 USCA at section 891. Other Federal and State law may apply particularly where checks or other negotiable instruments are traded within the Federal Reserve System especially with checks drafted on foreign banks or depository institutions. The U.C.C. at Section 3-104's defines a check to include

any instrument payable by draft. Any banking fees that may be charged must first appear in an agreement between the bank and its depositary customer and these agreements are subject to Federal and State law. Under the U.C.C. at Section 3-118, the statute of limitations is six (6) years for notes drawn in accordance. The U.C.C. is not rigidly adhered to in all jurisdictions.

Without exact detail as to your particular situation, I cannot state an advised action.

G. Joseph Holthaus III

(410) 799-9002

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Answered on 3/04/02, 8:59 pm


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