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Minnesota Bankers Association and Lake Central Bank sue FDIC over NSF fee guidance

CFPB Monitor

A complaint filed on July 20, 2023 in Minnesota federal court seeks declaratory and injunctive relief under the Administrative Procedures Act (APA) against defendants Federal Deposit Insurance Corporation (FDIC) and Chairman Martin J. Gruenberg for the FDIC’s issuance of supervisory guidance to banks under its supervision (i.e.,

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FDIC Moves to Dismiss Lawsuit Challenging NSF Fee Guidance

CFPB Monitor

The FDIC has filed motion to dismiss the lawsuit filed in July 2023 in a Minnesota federal district against the FDIC and its Chairman seeking to invalidate the FDIC’s supervisory guidance on charging multiple non-sufficient funds (NSF) fees for the same unpaid item. See out prior blog here.

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Plaintiffs file memorandum opposing FDIC’s motion to dismiss challenge to NSF fee guidance

CFPB Monitor

On February 14, 2024, the Minnesota Bankers Association and Lake Central Bank (the “Plaintiffs”) filed their memorandum in opposition to the Federal Deposit Insurance Corporation’s (FDIC) motion to dismiss their challenge to the FDIC’s supervisory guidance on NSF fees. Continue Reading

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Minnesota Bankers Association challenges FDIC's NSF rule

American Banker

The Minnesota Bankers Association and Lake Central Bank jointly filed a lawsuit against the Federal Deposit Insurance Corp. over its nonsufficient funds fee rules' inclusion of "unfair or deceptive acts or practices" violations in its policy.

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FDIC fights suit by Minnesota bankers over NSF fee guidance

American Banker

The FDIC is asking a judge to dismiss the case, arguing that the plaintiffs lack standing to sue. The lawsuit takes issue with the agency's 2022 guidance on nonsufficient funds fees, a hot-button topic in the banking industry.

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Seven states and D.C. file lawsuit challenging FDIC “Madden fix” rule

CFPB Monitor

The plain language of the governing federal statute applies only to interest that an FDIC-insured state bank may charge. Allegedly, the FDIC’s rule represents an expansion of the FDIA’s preemption of state law interest rate caps by extending the preemption to assignees of loans originated by such banks.

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Plaintiffs in lawsuit challenging OCC Madden-fix rule move for summary judgment

CFPB Monitor

The AGs in the lawsuit against the OCC, joined by the AGs for the District of Columbia, Massachusetts, Minnesota, New Jersey, and North Carolina, filed a second lawsuit against the FDIC to enjoin its similar “ Madden -fix” rule as to state banks. White who was appointed to the federal bench in 2002 by President George W.

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