Is it legal for a bank to charge an over draft fee because they clear a check slower than another bank?
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Is it legal for a bank to charge an over draft fee because they clear a check slower than another bank?
I deposited a pay check on Saturday and someone deposited a check out of my account on Sunday and come Monday the check out of my account had cleared before my pay check. This seems unlawful.
Asked on December 12, 2012 under Business Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
No, it is not unlawful; there is no law requiring all banks to clear at the same or highest speed, so sometimes a check out of your account will clear before a check into your account. It is your responsibility to insure there is enough of a reserve to handle all checks you write, even if a check you are depositing is delayed (or, for example, stop-paid).
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