Court rules on trade industry’s challenge to FDIC guidance on NSF fees

A judge in the U.S. District Court of the District of Minnesota ruled on the Federal Deposit Insurance Co.’s (FDIC) motion to dismiss a complaint brought by the Minnesota Bankers Association and Lake Central Bank, a Minnesota-chartered commercial bank, claiming one of the agency’s financial institutions letters (FIL) amounted to a legislative rule promulgated improperly under the Administrative Procedures Act. The FIL in question shared the FDIC’s guidance on when a bank charging multiple nonsufficient funds fees may run afoul of federal banking regulations.