Decoding Legal Order LTS: What it Means & How to Handle it
Opening up your bank statement only to find an unexpected charge can be alarming. Perhaps even more concerning is seeing a fee labeled “Legal Order LTS” without understanding what it means or why it appeared.
Getting hit with legal fees when you’re already struggling financially can feel like salt in a wound. But knowledge is power, so let’s shed some light on this bank charge.
Understanding exactly what a legal order LTS is and the reasons behind it will help you tackle the fee head-on or better yet, avoid it altogether. Let’s get started!
What is a legal order LTS fee on your bank account?
A Legal Order LTS fee, or Legal Order Legal Transcription Service fee, is a fee that is charged by a bank when they receive a legally binding request to provide records and information related to a customer’s bank account.
LTS stands for Legal Transcription Service. This references the transcription, or documentation, process involved when a bank receives a legal order.
Banks are required to comply when they receive a legitimate legal request for a customer’s financial records. These requests typically come from a court, government agency, or law enforcement office.
The financial information is needed to assist with various civil, criminal, or government proceedings.
Why do banks charge legal order fees?
Banks are for-profit businesses, so they issue fees like the Legal Order LTS to earn revenue. But more specifically, this charge helps recover costs incurred from the legal order process.
Handling a legal request takes time, effort, and resources for a bank. When they receive a legal order, the bank must:
- Log and document receiving the order
- Authenticate and validate the request
- Locate the customer’s account records
- Compile, copy, and organize the information
- Submit the records per the legal instructions
Banks also often have to get legal guidance to ensure they follow proper protocols. This can mean hiring lawyers to assist with handling legal orders.
Between labor hours, supplies, copying costs, and legal counsel, fulfilling legal record requests comes at a significant expense. The Legal Order LTS fee helps offset these costs.
How much are legal order LTS fees?
The amount charged for Legal Order LTS fees varies by bank. But fees typically range from $75 up to $125 per legal order received.
Here are the current legal order fees charged by some major banks:
| Bank | Fee |
|---|---|
| Bank of America | $125 |
| Chase | Up to $75 |
| Citibank | $125 |
| PNC | $100 |
| TD Bank | $125 |
| Truist | $125 |
| U.S. Bank | $100 |
| Wells Fargo | $125 |
The legal processing fee can be on the higher end if the legal order is complex. Fees in the range of $150+ are not unheard of for more convoluted requests.
When will a bank charge a legal order fee?
A bank will issue a Legal Order LTS fee any time they have to process and fulfill a legal request for a customer’s financial records.
These legal orders typically come from:
- Civil court cases
- Criminal investigations
- Child support enforcement
- Tax liens and levies (IRS unpaid back taxes)
- Wage garnishments
- Subpoenas
- Probate court
- Bankruptcy trustees
- Licensing boards
The financial records requested could include bank statements, cancelled checks, wire transfers, loan documents, safety deposit box contents, and any other account information.
If the bank has to provide ongoing reporting, like monthly bank statements for a set time period, multiple Legal Order fees may be charged. Legal order fees may be applied to various types of outstanding liabilities, such as unpaid traffic tickets, probation costs, victim compensation, and credit card bill payments. A Continuous Order to Withhold (COTW) remains effective for 12 months and is automatically attached to any applicable payments.
Can legal order fees be waived or refunded?
Unfortunately, getting Legal Order LTS fees waived or removed can be difficult. Since banks incur legitimate costs to process legal orders, they are rarely willing to reverse the charges.
But in some cases, asking the bank to reconsider the fee is worth a try:
- If the legal order was sent in error or fraudulent
- If you’ve been a long-standing, profitable customer
- If extreme hardship can be demonstrated
Highlighting how continued business and goodwill benefits the bank may persuade them to make an exception. But approach this politely and professionally. Antagonistic demands are unlikely to elicit fee waivers.
Although large banks rarely waive fees, having a strong advocate like DoNotPay can lead to substantial fee reductions. DoNotPay, a trusted third-party service, is committed to helping individuals minimize or eliminate bank fees from their accounts.
How to avoid legal order LTS fees
The most surefire way to avoid getting slapped with Legal Order fees is to stay out of legal trouble and pay all your financial obligations on time. But we know that’s often easier said than done.
Here are some practical steps to minimize your risk of incurring painful Legal Order LTS charges:
- Pay off debts – If you owe money for loans, credit cards, medical bills, etc., make paying them off a priority. Unpaid debts can trigger legal action and account reviews.
- Stay current on child support – Get a payment plan in place if you’re behind, and diligently make all ongoing child support payments. Missed payments can prompt enforcement reviews.
- File and pay taxes timely – Don’t let tax obligations slide. File returns on time, seek payment plans for any balances due, and make installment payments religiously.
- Avoid wage garnishments – If a creditor has won a judgment against you, expect your wages to potentially be garnished. Proactively arranging settlements can prevent this.
- Comply with court orders – If you’re party to a lawsuit or legal case, ensure you adhere to all court instructions and requests to avoid additional legal orders being issued.
- Review statements and alerts – Carefully check bank statements and notifications so you can stay informed. Being blindsided by Legal Order fees is never a pleasant surprise.
- Seek legal counsel – If you anticipate future court cases or legal issues, meet with a lawyer to understand how to minimize invasive legal proceedings. An ounce of prevention is worth a pound of cure.
- Maintain accurate contact info – To avoid “proof of life” legal orders if you can’t be located, ensure banks, employers, and government agencies have your current contact information.
Tip: Take steps to get your financial house in order, and you can steer clear of most situations that lead to costly Legal Order LTS fees. An ounce of prevention is truly worth a pound of cure when it comes to avoiding legal hassles.
Next steps If you've paid legal order LTS fees
If you’ve already been assessed painful legal order fees, here are some tips on what to do next:
Start by calling your bank’s customer service line to get more details on the charge. Specifically ask:
- What was the reason/basis for the legal order? (Lawsuit, child support case, tax lien etc.)
- Which court requested your account records? (Request the jurisdiction and case number to investigate)
- Is it possible to get the LTS fee waived or reduced in any way? Be polite but persistent.
Doing some independent research on any legal actions can also shed light on the source of the fees. Understanding the root case helps determine your options.
If there’s been a true error or circumstance change, contact the court directly to update the judge on the status. For instance, if you already paid off the debt in question, the legal order could be dissolved.
Be proactive following up on any outstanding debts or obligations that triggered the legal action. Resolve them fully so no further account inquiries are necessary. Don’t wait for accounts to be seized or garnished.
Finally, you may need to consult an attorney if the situation escalates to litigation. They can provide guidance on responding to orders and protecting your interests during legal disputes.
Take control: How to handle and avoid legal order LTS fees
It’s frustrating but reality that legal order LTS fees are a part of life when you owe debts subject to collection via the court system. They key is avoiding legal action in the first place through responsible money management and quick dispute resolution.
With this guide’s help, you now understand exactly what legal order fees are, why banks charge them, how they can be minimized, and what to do if you receive LTS charges. No more statement surprise! Armed with this knowledge, you can take control and handle such fees calmly and effectively.
