First Bank v. Tony's Tortilla Factory, Inc.

The issue in this case is whether a bank’s fee for cheeks drawn on an account with insufficient funds [“NSF fee”] constitutes usury. At the conclusion of the plaintiffs’ case, the trial court directed a verdict in favor of First Bank on the plaintiffs’ usury claim. The court of appeals reversed and remanded the usury cause of action. 857 S.W.2d 580, 591. We hold that as a matter of law the NSF fees in this ease are not interest. Thus, there can be no usury. Accordingly, we reverse the judgment of the court of appeals in part as to the usury claim, and render judgment that plaintiffs take…