Minnesota Bankers Association Sues FDIC Over NSF Fees Guidance

The Minnesota Bankers Association sued the Federal Deposit Insurance Corporation, challenging the agency’s guidance encouraging banks to refrain from charging multiple “non-sufficient funds” fees for the same unpaid transaction.

The trade association, which represents about 280 commercial banks and trust companies, claimed that enforcing the guideline would be “arbitrary and capricious agency action that exceeds the FDIC’s statutory authority,” according to the lawsuit filed Thursday with the US District Court for the District of Minnesota.

The guidance, which was sent out to more than 5,000 financial institutions last year, urged banks to evaluate risks from non-sufficient fees for the same ...