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Some of these practices include reducing or eliminating NSF fees entirely and / or updating internal practices , policies , and procedures to better alert consumers of NSF fees so they can take more proactive steps to avoid them .
Institutions are anticipating some level of residual risk will remain present for the near future as they work to address the host of internal changes that may arise as they enhance representment practices and updated third-party vendor systems .
At this time , this matter continues to evolve and could escalate among other regulatory agencies , it is important that both FDIC-supervised and non-supervised institutions be proactive in evaluating and identifying the potential harm consumers currently or previously face due to representment practices . These efforts may include performing a comprehensive lookback for restitution , if deemed necessary . Additional guidance is anticipated to be issued in the near future to clarify expectations among other state and federal supervised agencies . Stay tuned for future updates .
The FDIC has clarified and addressed its approach to supervisory oversight over this matter .
When exercising supervisory and enforcement responsibilities regarding multiple representment NSF fee practices , the FDIC will take appropriate action to address consumer harm and violations of law . The FDIC ’ s supervisory response will focus on identifying re-presentment related issues and ensuring correction of deficiencies and remediation to harmed customers . In reviewing compliance management systems , the FDIC recognizes an institution ’ s proactive efforts to self-identify and correct violations . Examiners will generally not cite UDAP violations that have been self-identified and fully corrected prior to the start of a consumer compliance examination . In addition , in determining the scope of restitution , the FDIC will consider an institution ’ s record keeping practices and any challenges an institution may have with retrieving , reviewing , and analyzing re-presentment data , on a case-by-case basis , when evaluating the time period institutions utilized for customer remediation . Failing to provide restitution for harmed customers when data on re-presentments is reasonably available will not be considered full corrective action . If examiners identify violations of law due to re-presentment NSF fee practices that have not been self-identified and fully corrected prior to a consumer compliance examination , the FDIC will evaluate appropriate supervisory or enforcement actions , including civil money penalties and restitution , where appropriate . - FDIC
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