It rubs. I've got lots of 1/8" deep slices in my tires from the tires being forced into the fenders. The rear is the worst, but I've decided long ago that I won't cut the steel to solve the problem, rather I'll find some other solution. Still working on that, with how I drive it and the few times that I flex it out and get in that situation though, its no big deal to me now.
I did bolt some hockey pucks on the front axle to help with the bump-stops, the rear is still the stock setup.