FDIC Limits Retry NSF Fee Lookback, Restitution Expectations

The FDIC recently revised its Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) to clarify its supervisory approach for corrective action and de-emphasize the need for a lookback review and/or consumer restitution under some circumstances.  In the original Guidance, issued in August 2022, the FDIC had identified instances during consumer compliance examinations wherein supervised institutions were unable to reasonably access accurate data for re-presented transactions beyond two years.  In those instances, the FDIC had stated it would accept a two-year lookback period for restitution.  Now, however, the FDIC is acknowledging “ongoing and extensive challenges . . . in accurately identifying re-presented transactions through core processing systems.”  For that reason, the FDIC now says that it “does not intend to request an institution to conduct a lookback review absent a likelihood of substantial consumer harm.”

WBK’s previous coverage of the Guidance can be found here.