The FDIC has reaffirmed in its Spring 2023 Supervisory Insights the expectation that banks will perform a lookback at potentially harmed customers due to re-presentments. The clarification is based on the Supervisory Guidance on Multiple Re-Presentment NSF Fees it issued in August 2022. That guidance:
- Announced a plan to increase transparency in the regulation of financial institutions charging multiple nonsufficient funds (NSF) fees for a re-presented transaction, and
- Encouraged financial institutions to increase transparency in disclosures and to “take full corrective action, including providing restitution to harmed customers (emphasis added).”
The clarification reinforced the FDIC’s intent to focus on this issue, and financial institutions should consider:
- Updating disclosures to new and existing customers to increase transparency, and
- Identifying specific multiple re-presentment NSF transactions and associated fees and providing restitution to harmed customers.
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