On June 16, 2023, the FDIC updated its Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) to clarify its supervisory approach for corrective action when a violation of law is identified. In August of 2022, the FDIC issued the original guidance to address certain consumer compliance risks associated with assessing multiple non-sufficient funds (NSF) fees arising from the re-presentment of the same unpaid transaction.
Since the issuance of the Supervisory Guidance on Multiple Re-Presentment NSF Fees in 2022, steps financial institutions have taken to remediate consumer harm associated with re-presentment fees have provided the FDIC with additional data about the amount of consumer harm associated with the issue at particular institutions and on-going and extensive challenges in accurately identifying harmed parties. Based on these data and experience, the FDIC updated the guidance to reflect the agency’s current supervisory approach to not request an institution to conduct a lookback review absent a likelihood of substantial consumer harm.
Read the FDIC’s press release here.
The updated guidance can be found here.