Smiley v. Citibank (South Dakota), N. A. (1995)
- Docket
- 95-860
- Decided
- 1995-01-01
Summary
Question: Does the National Bank Act of 1864 authorize a national bank to charge late-payment fees that are lawful in the bank's home State but prohibited in the States where the cardholders reside? Conclusion: Yes. In a unanimous opinion delivered by Justice Antonin Scalia, the Court held that the National Bank Act of 1864 authorizes such charges because a regulation adopted by the Comptroller of the Currency, which defined interest to include late-payment fees, was a reasonable interpretation of the act and entitled to deference. The Court rejected arguments that late-payment fees do not constitute interest because they do not vary based on the payment owed or the time period of delay and because they are penalties.