Question of the Week

Posted: Sep 29, 2022 | Author: Cornerstone Compliance Team
CFPB  compliance  NSF fees  overdraft fees 

Question: Can we charge NSF and Overdraft fees and still advertise our accounts as free?

Answer: Yes.

While you want to be very careful regarding the terms and details of a free account, the CFPB has specified that:

“A “free” or “no cost” account also means that the bank or credit union cannot charge you a fee for not meeting a minimum balance.

However, a “free” account may still have certain fees such as ATM fees, overdraft fees, bounced check fees, balance inquiry fees, fees to stop payment on a check, fees on a dormant account, or check-printing fees.”

Even with this guidance, we recommend that you consult your counsel before advertising any account as free due to past litigation in this area.  It may also just be best to avoid the term “free” altogether.


Sign up to the receive the weekly InfoSight eNewsletter email. Existing subscribers can manage their subscription.

Compliance Questions?

Cornerstone members have access to a wide variety of compliance assistance.

New Podcast

Cornerstone League Podcast

Now available on  Spotify and Apple Podcasts.

Perspectives Magazine

Perspectives Vol 17 Issue 4

Read the latest issue.