On March 27, WBA joined 12 other state bankers associations by signing on to an amicus brief filed by the Minnesota Bankers Association in a lawsuit that could have a far-reaching impact on overdraft programs and retroactive application of regulations. The suit, brought by CFPB against TCF National Bank earlier this year, alleges TCF engaged in unfair deceptive acts or practices and violated the Electronic Fund Transfer Act (Reg E) regarding its disclosure and sequencing practices and procedures in connection with overdraft programs for one-time debit card and ATM transactions. Further, CFPB’s suit seeks to retroactively impose Regulation E opt-in requirements for one-time debit card and ATM transactions. MBA’s brief supports TCF’s motion to dismiss not only on grounds that CFPB’s assertions fail as a matter of law, but that retroactive application of regulatory requirements impermissibly sets a new legal standard which would result in considerable uncertainty and new significant liability for all financial institutions.

Click here to read TCF’s Motion to Dismiss and click here to read the amicus brief.