After a prior dismissal of the New York State Department of Financial Services' lawsuit against the Office of the Comptroller of the Currency for the OCC's tentative plan to issue special-purpose national bank charters to FinTech companies, the DFS has now re-filed a new complaint, as promised.
Previously, the District Court for the Southern District of New York dismissed the DFS's 2017 lawsuit because it found that the OCC had not yet reached a final decision with respect to the issuance of FinTech Charters. The DFS indicated at the time that it was intent on renewing its legal challenges when the case becomes ripe. Following the OCC's announcement on July 31, 2018, indicating that it would immediately accept applications for FinTech Charters, the DFS filed its second lawsuit on September 14, 2018, challenging the OCC's authority to issue such national charters to companies that do not engage in the traditional banking activity of accepting deposits.
This lawsuit creates a roadblock for FinTech companies who might otherwise seek a national charter from the OCC, as it creates uncertainty over the legal status of these charters until a final resolution is reached in the DFS's lawsuit.
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