We are in the middle of an FDIC exam and they are questioning our OD fee disclosures on our statements. Currently, whether the item is paid or returned, the customer sees an “NSF check charge” on their statement. The charges are then broken down at the bottom of the statement MTD and YTD for fees assessed for paying items and fees assessed for returned items. The examiners are telling us that we must rename our NSF fee and have two separate fees- NSF check paid and NSF check returned, so the transaction detail matches the summary. Is this correct? We use Fidelity and they set the terms. If they are correct, I am surprised that our vendor doesn't have this correct.

We process through Fiserv. And our fees ARE broken down. If i'm not mistaken. Yes they have to be broken down.

Yes, the fees need to be 'broken' out. We do Overdraft Fee for paid and NSF fee for returned.

Contact your vendor to make sure they don't have a solution. If they do, fix it right away with the FDIC present. If they don't, document that the vendor has not provided a solution.

(We're also a Fiserv bank)

This is one of the items in the Reg. DD 7/1/06 changes that some vendors simply did not "get." Unhappily, it's really only hinted at in the regulation's Interpretations. Where it's stated very plainly is in the verbiage that accompanied the final regulation amendments in the Federal Register document.