representment

CFPB and OCC announce consent orders with Bank of America involving deposit account representment fees and credit cards

By John L. Culhane, Jr., Michael Gordon & Kristen E. Larson on July 12, 2023

Posted in CFPB, Credit Cards, Deposit Accounts, Regulatory and Enforcement

The CFPB and the OCC announced that they have each entered into a consent order with Bank of America, N.A. for alleged violations arising from the Bank’s representment fee practices (“Fee Consent Orders”). The CFPB also announced that it has entered into a second consent order with the Bank for alleged violations arising from certain of the Bank’s credit card-related practices. … Continue Reading

Massachusetts Division of Banks issues supervisory alert on NSF fees for representments

By Ballard CFS Group on October 1, 2021

Posted in Overdrafts, Regulatory and Enforcement, State regulation

The Division of Banks of the Massachusetts Office of Consumer Affairs and Business Regulation has issued a supervisory alert to warn financial institutions of the potential legal and regulatory risks arising from NSF fees charged on the representment of unpaid transactions.

The alert addresses the common scenario in which a financial institution charges an NSF fee when an ACH item is presented for payment from a consumer’s account and is declined due to insufficient funds in the account to cover the item. … Continue Reading