“Operation Choke Point” Lawsuit Dismissed

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released the following statement regarding the dismissal of the long-running lawsuit alleging regulatory pressure to close payday lender bank accounts:

The OCC is pleased by the plaintiffs’ decision to dismiss the OCC from their long-running lawsuit (Advance America et al. v. Federal Deposit Insurance Corporation et al. (D.D.C.)) alleging that federal banking regulators pressured banks to terminate payday lender bank accounts.

This resolution of the case confirms what the OCC has long told the U.S. District Court and the Congress: namely, that the agency did not participate in “Operation Choke Point” or in any purported conspiracy to force banks to terminate the bank accounts of plaintiffs or of other payday lenders. Furthermore, the OCC has not entered into any settlement agreement or made any other concessions to plaintiffs in exchange for their agreement to dismiss all claims against the agency.

The OCC continues to work toward its mission to ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations.