FDIC problems modified assistance for several costs charged for re-presented deals

The FDIC on Friday launched upgraded assistance clarifying that, with concerns to carrying out a lookback evaluation for several non-sufficient funds costs being charged for deals provided several times versus inadequate funds in a client’s account, the firm “does not intend to request an institution to conduct a lookback review absent a likelihood of substantial consumer harm.” The assistance did not elaborate on what the FDIC would think about to be “substantial consumer harm.”

The modifications to the assistance followed ABA and some members of Congress revealed worry about a previous expectation that banks perform a lookback when the bank’s disclosures were apparently misleading. The FDIC acknowledged “ongoing and extensive challenges . . . in accurately identifying re-presented transactions through core processing systems.”

The assistance—which was initially released in August 2022—details a variety of “risk-mitigating activities” that organizations might pursue in concerns to several NSF costs, and clarifies the firm’s supervisory method for restorative action when an infraction of law is determined.


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