BANKING

Late Fees by Out-of-State Banks Upheld: National banks based in other states can charge Californians whatever late-payment fees on credit cards the bank’s home state allows, the state Supreme Court ruled. Citing a Civil War-era federal law, the court voted 5-2 to dismiss a Los Angeles woman’s challenge to a $15 late fee charged by Citibank of South Dakota. Barbara Smiley’s suit said the fee, charged regardless of the amount due, greatly exceeded the bank’s costs associated with a late credit card payment. At the time of the suit, California law required bank fees to be reasonably related to costs. But the court, upholding lower-court rulings, said California law did not apply because the bank is not based in California. The $15 fee is legal in South Dakota, the court said.