Calling the guidance “overly broad in scope,” the federal bank deposit insurer on Friday rescinded a 2023 Financial Institution Letter (FIL) describing its supervisory approach to multiple nonsufficient funds (NSF) fees that occur when the same unpaid transaction is re-presented.
The Federal Deposit Insurance Corp. (FDIC), in new FIL-14-2026, said its 2023 FIL-32-2023, titled “Supervisory Guidance on Multiple Re-Presentment NSF Fees,” was issued to as a revision to FIL-40-2022, which was rescinded.
“Based on a review and assessment of the guidance in FIL-32-2023, the FDIC concludes that the guidance is overly broad in scope and has raised uncertainty regarding when, for instance, disclosures regarding re-presentments may result in ‘unfairness’ concerns under Section 5 of the Federal Trade Commission Act,” the agency said in Friday’s letter. That section prohibits unfair or deceptive acts or practices (UDAP).
The earlier-rescinded 2022 FIL stated that the agency “has identified violations of law when financial institutions charged multiple NSF fees for the re-presentment of unpaid transactions because disclosures did not fully or clearly describe the financial institution’s re-presentment practice, including not explaining that the same unpaid transaction might result in multiple NSF fees if an item was presented more than once.”
The 2023 letter went into greater detail on the types of violations that might occur. That letter included an attachment, which revised FIL-40-2022, summarizing potential risks arising from re-presentment NSF fees and offering suggestions for avoiding violations. One was disclosing that multiple fees might be assessed if an item is presented more than once; others included not assessing multiple NSF fees, or not assessing NSF fees at all.
In Friday’s letter on the rescission of that guidance, the agency said institutions it supervises “should ensure their disclosures to consumers accurately reflect their practices and are provided in accordance with applicable laws, regulations, and other current legal requirements.”
FDIC Rescinds Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-14-2026)
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