If you are an FDIC-regulated bank, you need to be aware of the FDIC’s recent guidance on multiple re-presentment NSF fees (FIL-40-2022). First, it WILL be addressed at your next exam. Second, if you haven’t started the process of self-identifying violations and making “full corrective action” before your next exam, enforcement actions, civil money penalties and/or restitution are likely on the table.
If you are not an FDIC-regulated bank, you probably still want to pay attention as it’s quite likely the other regulatory agencies will follow suit at some point.
On the civil side, there have already been class action lawsuits against banks regarding this issue, and the banks have either lost or settled.
Jerod gave a rundown of the FDIC’s guidance and an action plan for moving forward at our September Monthly Connection (see video clip below). We’ve also discussed it in our Banking on BCC magazine and will devote an entire session on this topic during our Virtual Deposit Conference on October 4th.
We are here to help! If you have concerns and need guidance, be sure to contact us!
Published
2022/09/20
