A coalition of industry groups has asked the Supreme Court to give banks more freedom to charge fees to out-of-state borrowers.

The coalition, writing in a March 29 friend-of-the-court brief, said the California Supreme Court was correct when it ruled that the National Bank Act prevents states from limiting fees charged by out-of-state institutions.

It said other courts, including the New Jersey Supreme Court, erred when declaring that states can regulate these fees.

The brief focused heavily on how banks would react to an adverse ruling. Michael Crotty, deputy general counsel for litigation at the American Bankers Association, said the coalition wanted the justices to realize how the decision could affect consumers.

Mr. Crotty said banks would stop offering cardholders frequent-flier miles, no-fee cards, cash rebates, and free insurance. These perks are economical only if banks can run national credit card operations that aren't affected by each state's laws, he said.

He also said consumers can always apply for a card from a bank in their home state, which would be subject to state fee limits. "These are free choices made by adults," Mr. Crotty said. "They don't have to take an out- of-state credit card."

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