1st Circ. Says Citizens Bank Overdraft Fees Aren't Interest

Law360 (March 26, 2019, 11:30 PM EDT) -- A split First Circuit panel Tuesday affirmed a lower court's dismissal of a putative class action brought against Citizens Bank NA, finding the flat overdraft fees charged by the bank do not qualify as interest under the National Bank Act.

The majority opinion, penned by U.S. Circuit Judge Sandra Lynch, said the decision came based on the text and history of the regulations under the act, as well as a 2007 interpretive letter from the Office of the Comptroller, which the majority found persuasive for at least four reasons.

"Flat excess overdraft fees arise from the terms of a bank's deposit...

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