FDIC Rescinds Representment Guidance

On April 10, 2026, the FDIC finally officially rescinded its 2022 guidance on representment NSF fees. The prior guidance required financial institutions to identify and refund improperly charged NSF fees. In rescinding the guidance, the FDIC acknowledged what had long been apparent to banks attempting to implement it: identifying consumers that had been “harmed” by representment was difficult.

The premise of the guidance was always dubious. According to the FDIC, banks failed to adequately disclose that consumers could be charged multiple NSF fees if the same item was presented for collection from the consumer’s account multiple times. The FDIC’s conclusion depended on what was frequently ambiguous language in deposit account agreements and fee disclosures.

Banks recognized immediately the impracticality of attempting to refund allegedly improper NSF fees to consumers. Core conversions, consumer overdrafts, and account terms that had changed over the years were just some of the challenges banks faced trying to refund the payments. Almost as soon as the guidance was issued, the FDIC quietly began softening enforcement before ultimately dropping the matter.

Even though the FDIC has now rescinded its guidance, banks should still ensure that their disclosures, particularly related to fees, are clear and reflect actual practices.