We believe you may refund the fees directly into customer accounts. We are unaware of any rules or guidance that directly addresses the procedure for returning improperly assessed overdraft fees. However, when banks are required to provide restitution for understated annual percentage rates (APR) or finance charges, the FDIC permits such restitution “either by official check or a deposit into an existing unrestricted consumer asset account, such as an unrestricted savings, checking or NOW account.”

In our view, you may follow the same procedure for refunding mistakenly charged overdraft fees and refund the money directly into a consumer’s account.

For resources related to our guidance, please see:

• FDIC Compliance Manual – TIL Restitution, (September 2015) (“Restitution must be made expeditiously. When lump sum payments to consumers are required to be made, they must be provided to the consumer either by official check or a deposit into an existing unrestricted consumer asset account, such as an unrestricted savings, checking or NOW account. If, however, the loan that triggered restitution is delinquent, in default, or has been charged off, the institution may apply all or part of the restitution to the amount past due, if permissible under law.”)