FDIC Advisory Committee on 

Community Banking 

October 26, 2022 

Supervision and Policy Update 
FDIC Advisory Committee on 

Community Banking 

October 26, 2022 

FDIC Return to Banks 
FDICi 

FEDERAL DEPOSIT INSURAl'-CE CORPORATION 

FDIC Advisory Committee on 

Community Banking 

October 26, 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
FDICi 

FEDERAL DEPOSIT INSURAl'-CE CORPORATION 

FDIC Advisory Committee on 

Community Banking 

October 26, 2022 

Re-Presentment of Unpaid Transactions 

Fees Associated with Authorize Positive/Settle Negative 

Transactions 
FDIC Advisory Committee on 

Community Banking 

October 26, 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 on 

Community Banking 

October 26, 2022 

Misrepresentation of Deposit Insurance 
 

FDIC Advisory Committee on 

Community Banking 

October 26, 2022 

Request for Information – Advertising and FDIC Logos 
FDICi 

FEDERAL DEPOSIT INSURAl'-CE CORPORATION 

 

FDIC Advisory Committee on 

Community Banking 

October 26, 2022 

Proposed Policy Statement on Prudent Commercial

Real Estate Loan Accommodations and Workouts 
FDIC 

 

 

 

Proposed Policy Statement 

• Proposed Policy Statement on Prudent Commercial Real Estate

Loan Accommodations and Workouts

 Issued with request for comment on August 2, 2022

 Comment period ends November 14, 2022

• Updates and Expansion:

 New section on short-term loan accommodations

 Information about changes in accounting principles

 Revisions and additions to examples of CRE loan workouts
FDIC 

 

 

 

 

 

 

 

 

 

Proposed Policy Statement 

• Key Principles Retained from 2009 Statement:

 Financial institutions that implement prudent CRE loan accommodation

and workout arrangements after performing a comprehensive review of a

borrower’s financial condition will not be subject to criticism for engaging

in these efforts, even if these arrangements result in modified loans that

have weaknesses that result in adverse credit classification

 Modified loans to borrowers who have the ability to repay their debts

according to reasonable terms will not be subject to adverse classification

solely because the value of the underlying collateral has declined to an

amount that is less than the loan balance
FDIC 

 

 

 

 

 

Proposed Policy Statement 

• Agencies received 20 unique comment letters

• Feedback:

 Request to clarify the terms “comprehensive review” and “reasonable

terms”

 Request to ensure examiners focus on local market conditions rather than

national trends

 Reminder to have examiners provide support for any adjustments to

collateral valuations and other examination determinations

The interagency working group will review all letters and 

make revisions as deemed necessary 
FDICi 

FEDERAL DEPOSIT INSURAl'-CE CORPORATION 

 

FDIC Advisory Committee on 

Community Banking 

October 26, 2022 

Proposed Policy Statement on Prudent Commercial

Real Estate Loan Accommodations and Workouts 
FDIC Advisory Committee on 

Community Banking 

October 26, 2022 

Supervision and Policy Update