$100 BANK NSF FEE?
February 16th, 2009 Posted in Personal Finance
Banks Can Charge As Much NSF Fees As They Want
I wrote an article about how banks are charging ridiculous NSF fees. This article became very popular and generated lots of traffic. Recently, after reading this article, one reader wanted to know if there is a maximum allowable NSF fee banks can charge. I could not answer this question because I did not know the answer by myself. So I wanted to find an answer and I ended up calling Financial Consumer Agency of Canada (FCAC).
FCAC is a federal government regulatory agency that ensures financial institutions comply with federal consumer protection laws and regulations. On Thursday I called them to find out if there is limit on how much banks can charge NFS Fee. I was totally blown away by their answers. NSF Fees have no limits. In simple words, In Canada, banks can charge as much NSF fees as they want. What it means? If banks keep increasing NSF fees every year, there is nothing you can do. Remember those days when NFS fees were like $10 or $15? Well, in the future, don’t be surprised if you get hit by $100 NSF fee. It may not happen in a couple of years or so; however; the way banks keep increasing NSF Fees, I would not be surprised if it reaches $100 someday. Right now, NFS fees are still below $50, but this may not last too long. What you can do not to pay NSF fees? Find your answers here: Banks Are Charging Ridiculous NSF Fees
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5 Responses to “$100 BANK NSF FEE?”
By Carl Burns on Mar 16, 2009
I have a question that I cannot seem to find an answer for. Let me preface the question with this short story. Several years ago CBC radio program As It Happens interviewed an elderly gentleman from Toronto who had a beef with his bank (RBC) over bank fees being charged after age 65. The gist of the story was that the man won his fight against the Royal Bank over the charging of bank fees for everyday services.
Has the bank act been changed to eliminate this rule or is it something that the banks certainly won’t go out of their way to broadcast (advertise)but if you provide proof of age, the bank has to comply and not make a charge for checking accounts, etc. Everyday banking stuff. I appreciate that loans to the elderly carry interest rates but this is regarding the everyday bank fees.
The man not only got a refund from the Royal but also got back bank fees charged to his wife’s accounts as well. So that’s my question.
By A.D. on Mar 16, 2009
I do not know/have no knowledge of an amendment to the Bank Act due to the scenario you mentioned above. However, it is unlikely that financial institutions will broadcast anything to reduce their fees-unless you speak out. Take me, for an example. I carry an annual fee credit card and still pay no annual fee. Do you think they will ever want consumers to know that it is possible? I don’t think so. How I do it? Read it here – http://adawnjournal.com/2007/08/23/updated-is-it-possible-to-hold-an-annual-fee-credit-card-and-still-pay-no-annual-fee/
By Neil on Apr 13, 2009
It was actually the process of switching banks that led to me experiencing TD’s exhorbitant NSF charges. Changing banks is a massive pain in the ass, and at one point, an automatic payment that should have been moved to the new account came out of the old account, after I’d moved all my money.
Anyways, the (less than friendly) folks at Enmax eventually acquiesced to covering the fee, since it they’d screwed up on two counts with it – both in taking longer than their stated 10 business days to change the account, and also not taking the money on time (they do this a lot).
Glad to be done with TD. 2 more years until I can move my mortgage, too.