QTR . 3 | 2022
••• IN THIS ISSUE
> Supervisory Guidance on Multiple Re-Presentment NSF Fees
> The Dangers of Incentive-Based Compensation
> Fair Credit Reporting Act Reporting Requirements Refresher
> Beware of Redlining
Supervisory Guidance on Multiple Re-Presentment NSF Fees
On Aug . 18 , 2022 , the Federal Deposit Insurance Corporation ( FDIC ) issued new supervisory guidance , Financial Institution Letter – Supervisory Guidance on Multiple Re-Presentment NSF Fees ( FIL- 40-2022 ), to FDIC-supervised institutions . Similar to the Consumer Compliance Supervisory Highlights issued in March 2022 , the FDIC released the guidance to further address the risk of charging multiple non-sufficient fund ( NSF ) fees to consumers presenting duplicate transactions , such as a utility bill payment made via card or checks , against an account ( s ) once the initial transaction is declined due to insufficient funds . The guidance also shares valuable insights into the FDIC ’ s supervisory approach to handling institutions whose representment practices are found to be in direct violation of the Fair- Trade Commission ( FTC ) Act and similar laws and regulations .
Even though the new guidance is currently targeted at the institutions the FDIC regulates , they do share valuable lessons and resources for all institutions , including ones regulated by other state and / or federal regulators , such as the National Credit Union Association ( NCUA ), Office of the Comptroller of Currency ( OCC ), and the Federal Reserve System ( FRB ). These lessons and resources may serve as an important guide and introductory roadmap to help you assess whether current representment practices expose your organization to risks .
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