Feedback on Represented Item NSF Fees

The practice of charging multiple NSF fees on represented items has been a huge deal lately for FDIC-regulated banks. We have put out several blogs in the last couple of months, wrote about it in our Magazine, and it was a hot topic session during our recent Virtual Deposit Conference.

Many banks have been doing this for years, and while the regulations haven’t changed, interpretations and perceptions have. At this point, the FDIC has been the only regulator to issue guidance (FIL-40-2022), including lookbacks and restitution. It was also addressed in their March 2022 Supervisory Highlights.

We recently heard some feedback from a few of our FDIC-regulated clients and wanted to pass it along. Specifically, some client banks were told that if they do a two-year lookback on their own and provide restitution (if necessary), examiners won’t look at this any further. However, examiners will require a five-year lookback if the bank does not do anything or isn’t very far along in its lookback process.

Again, this is feedback from just a few of our clients, and you may still want to confirm with your examiners to be sure.

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Amy Kudlacek

Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager. Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelors Degree in Business Administration and is a graduate of the ABA Compliance School. Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!

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