Wednesday, July 24, 2024

FDIC updates guidance on multiple re-presentment NSF fees

The FDIC has updated its Supervisory Guidance on Multiple Re-Presentment NSF Fees to clarify its supervisory approach for action when a law is violated.

Since the issuance of the Supervisory Guidance on Multiple Re-Presentment NSF Fees, 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 this additional data and experience, the FDIC is updating and reissuing the guidance to reflect current supervisory approach to not request an institution to conduct a lookback review absent a likelihood of substantial consumer harm.

In the months after the initial guidance regarding re-presentments was released, numerous community banks shared concerns with the OBA and the Oklahoma State Banking Department. State Banking Commissioner Mick Thompson began work with the FDIC to make changes as the original guidance was having a negative effect on community banks in Oklahoma.

This is a good day for community banking in Oklahoma. Thanks to the FDIC for recognizing there were issues with the initial guidance and making the necessary changes to benefit the industry.