Navy Federal Beats Appeal of Suit Targeting Bounced Check Fees

Navy Federal Credit Union can’t be held liable under California law for its returned check fees since federal credit union regulations preempt state statutes, the Ninth Circuit ruled Friday.

A district court’s dismissal of Andrew King’s proposed class action against the credit union was affirmed by the US Court of Appeals for the Ninth Circuit.

“Although King offers an Olympic level of verbal gymnastics to argue that” California law transcends the regulatory preemption clause, we agree “all state laws that regulate account fees—general, specific, or otherwise—have no application to federal credit unions,” Judge John B. Owens said in the opinion. ...