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#2272569 - 07/08/22 03:54 PM Junk Fees FDIC Supervisory Highlights
jaybritt Offline
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Joined: May 2004
Posts: 44
Tennessee
The FDIC stated in the March 2022 highlights that we were being "potentially deceptive or unfair" if we didn't explain ....one NSF would be charged per item or per transaction and if that item was represented that transaction might result in additional NSF Fees. So to try to avoid UDAAP, we added wording to our service charge brochure to explain there could be multiple fees. Also updated our ODP (Overdraft Privilege Program) terms and conditions regarding this fee. What about the A9 model form? Should we put anything on that model form under What Fees Will I Be Charged if The Bank Pays My Overdraft? section.

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#2272592 - 07/08/22 08:03 PM Re: Junk Fees FDIC Supervisory Highlights jaybritt
JWills, CRCM Offline
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The Mitten State
I know it is a very hot topic right now with examiners.
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#2272608 - 07/11/22 01:25 PM Re: Junk Fees FDIC Supervisory Highlights jaybritt
John Burnett Offline
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I think you should update the A-9 disclosures. Consistency across your disclosures is always a good idea.
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#2272623 - 07/11/22 04:09 PM Re: Junk Fees FDIC Supervisory Highlights John Burnett
jaybritt Offline
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Joined: May 2004
Posts: 44
Tennessee
that was my first thought, but since it was a model form, afraid we would receive negative input from the examiners.
Last edited by jaybritt; 07/11/22 04:10 PM.
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#2272624 - 07/11/22 04:16 PM Re: Junk Fees FDIC Supervisory Highlights jaybritt
BrianC Online
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Illinois
The model form permits bank specific modifications. For example, in the section "standard overdraft practices" some institutions had to add a bullet for "bank fees" if they charged a continuous overdraft fee for accounts that became overdrawn due to a bank fee. Additional clarification part of your standard overdtraft pratices is to pay fees based on represented checks and ACH transactions would be appropriate.
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#2272644 - 07/11/22 09:34 PM Re: Junk Fees FDIC Supervisory Highlights BrianC
jaybritt Offline
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Joined: May 2004
Posts: 44
Tennessee
Thanks guys for the input!

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#2273135 - 07/20/22 06:43 PM Re: Junk Fees FDIC Supervisory Highlights jaybritt
John Burnett Offline
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Cape Cod
Using a model form to make a required disclosure doesn't put you in compliance if the disclosures on the form don't reflect actual practice.
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