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ARTICLE · 27 JULY 2022

NYDFS Issues Guidance On Avoiding Improper Practices Related To Overdraft And Non-Sufficient Fund Fees

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On July 12, 2022, the New York State Department of Financial Services (NYDFS) issued new guidance alerting New York State-regulated depository institutions (Institutions) that they will be evaluated...

United StatesFinance and Banking
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Amber A. Hay
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Michael Mancusi
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Kevin Toomey
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On July 12, 2022, the New York State Department of Financial Services (NYDFS) issued new guidance alerting New York State-regulated depository institutions (Institutions) that they will be evaluated on whether they engage in deceptive or unfair practices with respect to overdraft and non-sufficient fund (NSF) fees in future Consumer Compliance and Fair Lending examinations. The guidance was welcomed by state lawmakers and nonprofit organizations who expressed concern that such fees disproportionately impact the most vulnerable consumers, such as those who are living paycheck to paycheck and struggling to make ends meet, as well as communities of color.

The guidance informs Institutions of the need to avoid the following practices:

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