Returned mail fee / service charge fee

The joys of returned mail!

Returned mail fees, also known as service charge fees, are charges imposed by postal services or financial institutions when a payment or document is returned due to various reasons. Here are some common scenarios where you might encounter these fees:

  1. Returned checks: When a check is returned due to insufficient funds, closed account, or other reasons, the bank may charge a returned check fee, which can range from $20 to $40.
  2. Undeliverable mail: If a letter or package is returned to the sender due to an incorrect address, the postal service may charge a fee for handling and re-delivery.
  3. Payment processing errors: If a payment is returned due to an error in processing, such as an incorrect account number or payment amount, the financial institution may charge a fee for re-processing the payment.
  4. Overdraft fees: When a payment is returned due to insufficient funds, the bank may charge an overdraft fee, which can range from $20 to $40.
  5. Late payment fees: If a payment is returned due to late payment, the creditor may charge a late payment fee, which can range from $20 to $50.

These fees are usually charged to cover the costs associated with processing and re-processing the returned payment or document. However, it's essential to review your account agreements and understand the specific fees and charges applicable to your account.

To minimize the impact of returned mail fees, make sure to:

  1. Verify your account information and payment details before submitting payments.
  2. Use accurate and up-to-date addresses for mail and packages.
  3. Keep track of your account balances and avoid overdrafts.
  4. Set up automatic payments or reminders to ensure timely payments.
  5. Review your account statements regularly to detect any errors or discrepancies.

Remember, it's always a good idea to communicate with your financial institution or postal service if you encounter any issues with returned mail or payments. They may be able to waive or reduce the fees in certain circumstances.