FDIC Beats Minnesota Banks in Appeal Over Biden-Era Fee Guidance

A federal appeals court turned aside a challenge from Minnesota bankers to Federal Deposit Insurance Corp. guidance that warned banks against charging customers multiple fees for insufficient funds on the same unpaid transaction.

The June 2023 guidance, Financial Institution Letter 32, wasn’t ripe for judicial review because the FDIC never determined that related bank fee practices were unlawful, a three-judge panel of the US Court of Appeals for the Eighth Circuit ruled Wednesday.

“FIL 32 merely advises covered institutions about how the FDIC approaches potential violations during examinations and what the institutions can do to reduce their risk of violating ...