FDIC Threatens to Punish Banks that Impose Repeat NSF Fees

Source: American Banker

The Federal Deposit Insurance Corp. warned banks that it will consider enforcement actions if the banks it supervises are repeatedly charging "nonsufficient-funds" fees for the same transaction. 

On Thursday, the FDIC issued guidelines that said banks that charge multiple NSF fees on the same unpaid transaction could be violating the Federal Trade Commission Act, which prohibits "unfair or deceptive acts or practices." 

While NSF fees are similar to overdraft fees, they are somewhat different. Overdraft fees, which consumers have to "opt in" to, are levied when banks cover purchases for customers when they don't have enough in their account, while NSF fees are charged when a check bounces or a debit card purchase is declined.