I have a couple of fair lending questions for you… The Bank has teacher program which gives them lower NSF fees ($9 instead of $35). Would this be considered a FL issue since we are giving them a lower fee. Specially if there are accounts that may be teachers (without the Bank’s knowledge) getting the regular NSF fee.

Our NSF items are processed manually for customers who don’t have OD program and automatic with the OD Privileged program. Because of how some items may be paid and others returned and some NSF fees waived would this be an issue regarding FL and possibly UDAAP

Thanks,

Teachers are not a protected class. Unless you can link your actions to a protected class, then FL is not a problem. That does not eliminate UDAAP worries.

Totally agree with rlcarey as usual. Just wanted to add that I have seen examiners go after programs like that looking for demographics to say that the qualifying aspect is a proxy...totally unreasonable but you may want to give it a little thought before they go there. The UDAAP is the bigger issue, as examiners may look to see how do you make sure that everyone who is entitled gets the benefit through your process. This can be difficult in a manual environment so a little testing/validation can go a long way to closing this avenue of inquiry be examiners.