The U.S. National Bank charges a fee to its checking account depositors for processing nonsufficient fund (NSF) checks. The plaintiffs claimed that the NSF fees were illegal because they were higher than the Bank's cost for processing the checks. There was no agreement between the depositors and the Bank for NSF fees. The Bank has the discretion to set its NSF fees but has to do it within the depositors' reasonable expectations. The question before the court is whether the Bank established its NSF fees in good faith. National banks can set deposit account service charges that comply with federal regulations, and state laws that limit or prohibit the amount of the charges are preempted by federal law.
Best v. United States National Bank (1987)
Oregon Supreme Court
303 Or. 557, 739 P.2d 554
Learn more about this case at https://www.lsd.law/briefs/view/best-v-united-states-national-bank-4409153
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