Author: Andrew Howard
On April 10, 2026, the FDIC issued a new FIL concerning Multiple Re-Presentment NSF fees. This FIL rescinds the prior FDIC communication from June 16, 2023, which had already signaled a possible softer approach from regulators to re-presentment NSF fees as the guidance published in 2023 was a reissuance of an earlier FIL issued in 2022. The guidance issued in 2022 and 2023 coupled with regulatory actions in those timeframes generally viewed multiple NSF fees assessed against single transactions as “junk” fees and if not properly disclosed the assessment of these fees could rise to the level of a violation under Section 5 of the Fair Trade Commission (FTC) Act. Financial Institutions were encouraged to review their practices and disclosures regarding these multiple re-presentment fees and ensure that risk mitigation practices were implemented to reduce consumer harm and potential violations. With the release of the new FIL on April 10th, the FDIC is rescinding its earlier issuances of guidance concerning Multiple Re-presentment NSF Fees. The FDIC, through a review and assessment, has concluded that the previous guidance provided was too broad in nature and caused confusion as to when NSF re-presentment fees could result in potential unfairness concerns under Section 5 of the FTC Act.
Although this guidance has been rescinded, it is recommended that institutions continue to ensure that their practices are clearly disclosed to their customers and the disclosures and/or agreements provided accurately reflect the practices with concerns to Multiple Re-Presentment NSF fees. At this point, we are not aware of any other prudential regulators rescinding related guidance. If your financial institution is considering making any changes with overdraft or NSF practices, please let us know how we can be helpful.
FIL-14-2026
Referenced FIL: FIL-32-2023
Original Guidance: FIL-40-2022
On April 10, 2026, the FDIC issued a new FIL concerning Multiple Re-Presentment NSF fees. This FIL rescinds the prior FDIC communication from June 16, 2023, which had already signaled a possible softer approach from regulators to re-presentment NSF fees as the guidance published in 2023 was a reissuance of an earlier FIL issued in 2022. The guidance issued in 2022 and 2023 coupled with regulatory actions in those timeframes generally viewed multiple NSF fees assessed against single transactions as “junk” fees and if not properly disclosed the assessment of these fees could rise to the level of a violation under Section 5 of the Fair Trade Commission (FTC) Act. Financial Institutions were encouraged to review their practices and disclosures regarding these multiple re-presentment fees and ensure that risk mitigation practices were implemented to reduce consumer harm and potential violations. With the release of the new FIL on April 10th, the FDIC is rescinding its earlier issuances of guidance concerning Multiple Re-presentment NSF Fees. The FDIC, through a review and assessment, has concluded that the previous guidance provided was too broad in nature and caused confusion as to when NSF re-presentment fees could result in potential unfairness concerns under Section 5 of the FTC Act.
Although this guidance has been rescinded, it is recommended that institutions continue to ensure that their practices are clearly disclosed to their customers and the disclosures and/or agreements provided accurately reflect the practices with concerns to Multiple Re-Presentment NSF fees. At this point, we are not aware of any other prudential regulators rescinding related guidance. If your financial institution is considering making any changes with overdraft or NSF practices, please let us know how we can be helpful.
FIL-14-2026
Referenced FIL: FIL-32-2023
Original Guidance: FIL-40-2022
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