service charge

service charge
That charge assessed by bank against the expense of maintaining a customer's demand deposit or checking account, and is calculated on basis of a formula whereby bank's cost of maintaining account for customer is determined. U. S. v. First Nat. Bank of Jackson, D.C.Miss., 301 F.Supp. 1161, 1207. "Credit service charge" means the sum of
(1) all charges payable directly or indirectly by the buyer and imposed directly or indirectly by the seller as an incident to the extension of credit, including any of the following types of charges which are applicable: time price differential, service, carrying or other charge, however denominated, premium or other charge for any guarantee or insurance protecting the seller against the buyer's default or other credit loss; and
(2) charges incurred for investigating the collateral or credit-worthiness of the buyer or for commissions or brokerage for obtaining the credit, irrespective of the person to whom the charges are paid or payable, unless the seller had no notice of the charges when the credit was granted. Uniform Consumer Credit Code, No. 2.109

Black's law dictionary. . 1990.

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