FDIC issues revised guidance for multiple fees charged for re-presented transactions

The FDIC on Friday released updated guidance clarifying that, with regards to conducting a lookback review for multiple non-sufficient funds fees being charged for transactions presented multiple times against insufficient funds in a customer’s account, the agency “does not intend to request an institution to conduct a lookback review absent a likelihood of substantial consumer harm.” The guidance did not elaborate on what the FDIC would consider to be “substantial consumer harm.”

The changes to the guidance came after ABA and some members of Congress expressed concern with a prior expectation that banks conduct a lookback when the bank’s disclosures were allegedly deceptive. The FDIC acknowledged “ongoing and extensive challenges . . . in accurately identifying re-presented transactions through core processing systems.”

The guidance—which was originally issued in August 2022—outlines a range of “risk-mitigating activities” that institutions could pursue in regards to multiple NSF fees, and clarifies the agency’s supervisory approach for corrective action when a violation of law is identified.