FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

State-Federal Coordination 
FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

FDIC Return to Banks 
 

FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

Re-Presentment of Unpaid Transactions

Fees Associated with Authorize Positive/Settle Negative 

Transactions 
FDIC 

 

 

 

 

Re-Presentment of Unpaid Transactions 

• Relates to a bank’s assessment of multiple non-sufficient

funds (NSF) fees arising from the re-presentment of the

same unpaid transaction

• On August 18, 2022, the FDIC issued FIL-40-2022 –

Supervisory Guidance on Multiple Re-Presentment NSF Fees

to share its supervisory approach where a violation of law is

identified and full corrective action is expected
FDIC 

 

 

 

 

 

 

Re-Presentment of Unpaid Transactions 

• FIL-40-2022 – Supervisory Guidance on Multiple

Re-Presentment NSF Fees

• Highlights several consumer compliance risks associated with this

practice including violating Section 5 of the Federal Trade

Commission Act, which prohibits unfair or deceptive actions or

practices, third-party risk and litigation risk

• Encourages institutions to review their practices and disclosures and

consider several risk mitigation practices

• Notes that examiners will generally not cite a violation where an

institution has self-identified the violation and fully corrected the

issue prior to the start of the consumer compliance examination
FDIC 

 

 

 

 

 

Fees Associated with “Authorize Positive/Settle Negative” 

Transactions 

• Relates to a bank’s assessment of an overdraft fee based on

insufficient funds at the time of settlement, even though the

consumer had sufficient funds available when the consumer

entered into the transaction – commonly referred to as an

“Authorize Positive/Settle Negative” (APSN) transaction

• The FDIC’s June 2019 Consumer Compliance Supervisory

Highlights described the practice, highlighted consumer

compliance risks, and provided several ways in which an

institution could mitigate risks related to this practice
 

FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

Re-Presentment of Unpaid Transactions

Fees Associated with Authorize Positive/Settle Negative 

Transactions 
FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

Misrepresentation of Deposit Insurance 
FDIC 

 

 

 

FDIC’s Statutory Authority 

Section 18 of the Federal Deposit Insurance Act prohibits any 

person from: 

• Misusing the name or logo of the FDIC to represent or imply 

that any uninsured product is insured, or 

• Making knowing misrepresentations about the extent or 

manner of deposit insurance coverage. 
FDIC 

 

 

 

 

 

 

 

New Rule Regarding Misrepresentation of Deposit Insurance 

• In recent years, the FDIC observed an increasing number of 

instances where financial service providers or other entities or 

individuals were misusing the FDIC’s name or logo or were 

making false or misleading representations about deposit 

insurance. 

• On May 17, 2022, the FDIC issued a new rule to provide 

transparency regarding the agency’s procedures for 

identifying, investigating, and where necessary, taking 

enforcement actions against individuals or entities to address 

such misrepresentations. 

• The new rule became effective July 5, 2022. 
FDIC 

 

 

 

 

Types of Deposit Insurance Misrepresentations 

Fraudulent entities may create websites to mimic or spoof legitimate bank 

websites in the hopes of collecting customers’ names and passwords. 

Non-bank financial service providers may imply or state that the non-bank 

entity is FDIC-insured and/or that the entity’s uninsured products or 

services are insured. 

Non-bank companies (e.g., precious metal dealers) may make false 

statements about the efficacy of deposit insurance in an effort to lure 

customers toward higher-risk investments. 
FDIC 

 

 

 

 

 

Recent Enforcement Efforts 

• As part of the FDIC’s new Misrepresentation Rule, the FDIC

established an online portal to receive complaints and inquiries

about potential deposit insurance misrepresentations.

• Available at:

https://ask.fdic.gov/fdicinformationandsupportcenter

• Since July 5th

, more than 325 complaints have been received

through the portal.

• In response to these complaints, the FDIC has issued six public

cease-and-desist letters to companies, and the agency is

continuing to evaluate potential misrepresentations as they are

brought to the FDIC’s attention. 
FDIC 

 

 

Additional Resources Regarding FDIC Deposit Insurance 

• Part 328 Rulemaking on False Advertising & Misrepresentation 

of Insured Status (June 2, 2022) 

• Fact Sheet – What the Public Needs to Know About FDIC 

Deposit Insurance and Crypto Companies (July 28, 2022) 

• Financial Institution Letter (FIL-35-2022) – Advisory to FDICInsured Institutions Regarding Deposit Insurance (July 29, 

2022) 

• Is an institution FDIC insured? – Visit the FDIC’s BankFind 

website 

• Inquiries regarding deposit insurance – Call 1-877-ASK-FDIC or 

visit the FDIC’s Information and Support Center 
FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

Misrepresentation of Deposit Insurance 
FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

Request for Information – Advertising and FDIC Logos 
FDIC Advisory Committee of 

State Regulators 

October 24, 2022 

State-Federal Coordination