Financial Guardianship of Mentally Handicapped Son

[castleton]

My question involves guardianship in the State of: Indiana

My mentally handicapped son opened several bank accounts and credit cards a year ago. I was able to close them all, but one of the bank accounts had two checks written that had not cleared when I closed the account. Those checks went into collection. I worked with one creditor and repaid the debt. However, the second creditor tacked on a $155 charge to the $41 check. I have explained that my son is under guardianship and want to make good on the debt, but he is not backing down from the charges. Am I correct in understanding that under Indiana guardianship, any contract (bank account) was illegal and therefore null and void? What options do I have?

[Mr. Knowitall]

You caused this when you closed the account. You should have made sure that the outstanding checks were covered. Apparently neither the banks nor the people to whom your son (apparently adult son) issued the check were aware of the guardianship, and apparently your son received and did not return something valuable for the $41 check.

You have told us nothing about how this $155 fee was calculated or what it represents. Fill us in. It sounds like an unlawful fee.

[castleton]

Yes, my son was 20 when this occurred. He purchased items at Walgreens...candy, personal items, etc. The collection agency is a law firm from New York named Bradley J. Rephen and all they told me was that the charges were "their charges that were added to the check".

[aaron]

It appears that they may request a $20 bad check fee, plus reimbursement of any bank fees they incurred:

Sec. 502.5. (a) Except as provided in subsection (b), a person to whom a check, a draft, an order, or like instrument is tendered may, if the instrument is dishonored or returned unpaid for any reason, charge and collect from the maker or drawer, or the person for whose benefit the instrument was given, an amount not to exceed twenty dollars ($20) plus an amount equal to the actual charge by the depository institution for each returned or dishonored instrument. The charge shall not be considered an interest charge, a finance charge, a time price differential, or any charge of a similar nature.

(b) To the extent applicable to a federally chartered bank, if a check is dishonored, a bank, trust, banc, banco, or bancorp may not charge any party other than the maker or drawer of the check a fee in connection with the dishonoring of the check.

[castleton]

I offered to send a $20 bad check fee and was told the fee was $150. Is this legal? Do I have any recourse?