Can banks charge dishonour fees?
Can you explain to me, in detail, the practice of banks charging dishonour fees? Are these fees legitimate and are there any regulations in place to govern them? I'm particularly interested in understanding the circumstances under which a bank may impose such a fee, and if there are any steps that customers can take to avoid them. Additionally, I'd like to know if there are any alternatives to traditional banking services that might offer a more cost-effective or fee-free solution for those who frequently encounter dishonour fees.
Why are dishonour fees charged?
Could you please elaborate on the rationale behind the imposition of dishonour fees? Are these charges intended to compensate for the inconvenience or additional costs incurred by the party affected by the dishonoured transaction? Are there any specific criteria or regulations governing the amount of these fees? Additionally, are there any measures in place to ensure that these fees are not excessively high or unfairly imposed? Understanding the purpose and justification behind dishonour fees would be greatly appreciated.
Do dishonour fees affect your credit score?
Could you please elaborate on how dishonour fees might potentially impact an individual's credit score? Are these fees reported to credit bureaus, and if so, how do they factor into the overall credit assessment? Additionally, are there any specific steps that consumers can take to mitigate the negative effects of dishonour fees on their creditworthiness?