MBA, bank pursuing FDIC lawsuit

The Minnesota Bankers Association and Lake Central Bank in Annandale, Minn., filed an appeal with the Eighth Circuit Court of Appeals regarding their lawsuit against the Federal Deposit Insurance Corporation. The co-plaintiffs filed the notice on June 5, some two months after the federal district court granted the FDIC’s motion to dismiss the lawsuit. The court dismissed the lawsuit, without prejudice, on the procedural grounds that the co-plaintiffs did not have standing to sue the agency.

The suit addresses guidance published almost two years ago by the FDIC regarding non-sufficient funds fees and item re-presentment. In the appeal, the co-plaintiffs make the case that they do have standing to sue.

The co-plaintiffs argue that the FDIC lacked the authority to require banks to revisit their NSF fee practices and that the FDIC violated the Administrative Procedures Act.