smiley citibank south dakota argued april decided june petitioner resident california held credit cards issued respondent national bank located south dakota filed suit state alleging fees charged respondent although legal south dakota law violated california law respondent moved judgment pleadings contending petitioner state law claims provision national bank act permits national bank charge loan customers interest rate allowed laws state bank located section see marquette nat bank minneapolis first omaha service california superior accepting respondent argument credit card fees constitute interest purposes section granted respondent motion state appeal state affirmed held comptroller currency reasonably interpreted term interest section include fees see cfr section petitioner failed establish accord customary deference comptroller interpretation ambiguous provision national bank act pp provision national bank act ambiguous pursuant chevron natural resources defense council defers reasonable judgments comptroller official charged administering act nationsbank variable annuity life ins petitioner argument deference owing recently adopted cfr section unpersuasive validity comptroller interpretation affected fact regulation issued years section enacted litigation including suit disclosed need regulation distinction regulation makes charges designated interest classified arbitrary capricious see chevron supra petitioner errs contending agency interpretation contradicts prior agency position necessarily invalid event fails show change official agency position occurred finally issue meaning section bring play considerations petitioner raises pp comptroller interpretation statutory term interest reasonable indication time passage national bank act common usage word interest phrase rate allowed required interest charges expressed functions time amount owing support petitioner contention late fees penalties rather interest see citizens national bank donnell pp cal affirmed scalia delivered opinion unanimous notice opinion subject formal revision publication preliminary print reports readers requested notify reporter decisions washington typographical formal errors order corrections may made preliminary print goes press end syllabus barbara smiley petitioner citibank south dakota late fees permitted south dakota law see codified laws section supp petitioner however view exacting unconscionable late charges california residents violates california law brought class action respondent behalf california holders respondent credit cards asserting various statutory claims respondent moved judgment pleadings contending petitioner claims section superior los angeles county initially denied respondent motion california appeal second appellate district issued writ mandate directing superior either grant motion show cause required superior chose former course appeal affirmed dismissal complaint cal app cal rptr california granted review affirmed two justices dissenting cal granted certiorari ii march california superior dismissal petitioner complaint comptroller currency noticed public comment proposed regulation dealing subject us see fed reg february california decision adopted following provision term interest used section includes payment compensating creditor prospective creditor extension credit making available line credit default breach borrower condition upon credit extended includes among things following fees connected credit extension availability numerical periodic rates late fees sufficient funds nsf fees overlimit fees annual fees cash advance fees membership fees ordinarily include appraisal fees premiums commissions attributable insurance guaranteeing repayment extension credit finders fees fees document preparation notarization fees incurred obtain credit reports fed reg codified cfr section second petitioner contends comptroller regulation deserving deference rational basis distinguishing various charges denominated interest charges denominated reply brief petitioner disagree analytical matter seems us perfectly possible draw line regulation payment compensating creditor prospective creditor extension credit making available line credit default breach borrower condition upon credit extended payments sure broadest sense payments connected way reimbursement lender costs processing application insuring loan appraising regarded compensating creditor extension credit seems us quite possible rational distinguish regulation charges specifically assigned expenses assessed simply making loan borrower default logic least line arbitrary capricious thereby disentitled deference chevron see whether arbitrary capricious interpretation statute perhaps even chevron also excludes deference manifestly contrary statute discuss next part opinion finally petitioner argues regulation entitled deference inconsistent positions taken comptroller past course mere fact agency interpretation contradicts prior agency position fatal sudden unexplained change see motor vehicle mfrs assn state farm mut automobile ins change take account legitimate reliance prior interpretation see pennsylvania industrial chemical nlrb bell aerospace may arbitrary capricious abuse discretion section pitfalls avoided change invalidating since whole point chevron leave discretion provided ambiguities statute implementing agency case think anything accurately described change official agency position occurred agency notice proposed rulemaking asserted new regulation reflect current law office comptroller currency occ interpretive letters fed reg statement basis purpose accompanying final adoption stated final ruling consistent occ interpretive letters area reflects position occ taken amicus curiae briefs litigation pending many state federal courts fed reg citing occ interpretive letters petitioner points june letter comptroller president committee consumer interests harges late payments credit life insurance recording fees documentary stamp illustrations charges made banks properly characterized interest see app brief petitioner opinion letter deputy chief counsel occ stating position section laws banks located determine whether banks impose foregoing fees charges including late fees iowa residents occ interpretive letter reprinted transfer binder cch fed banking para doubt whether either statements sufficient establish binding agency former informal latter purported represent position deputy chief counsel response inquiry concerning particular banks even argued two statements reflect prior agency policy since addition contradicting regulation us also contradict one former asserting interest nationally uniform concept latter determined reference state law statements show anything good reason comptroller promulgate new regulation order eliminate uncertainty confusion addition offering reasons cfr section particular entitled deference petitioner contends comptroller interpretation section entitled deference section provision state law argues presumption announced cipollone liggett group effect trumps chevron requires make interpretation section avoid extent possible state law argument confuses question substantive opposed meaning statute question whether statute may assume without deciding latter question must always decided de novo courts question issue doubt section state law marquette nat bank minneapolis first omaha service dismissed petitioners argument exportation interest rates bank home state significantly impair ability enact effective usury laws observation impairment always implicit structure national bank act protection state usury laws issue legislative policy plea alter section end better addressed wisdom congress judgment issue simply meaning provision like provision cipollone deal hence bring play considerations petitioner raises iii petitioner argues late fees charged respondent constitute interest vary based payment owed time period delay brief petitioner think limitation must read statutory term legal dictionaries era national bank act place limitation upon interest see bouvier law dictionary ed compensation paid borrower lender debtor creditor use money burrill law dictionary glossary ed american english encyclopedia law merrill ed see wharton law lexicon dictionary jurisprudence amer ed definition interest set brown hiatts wall decided shortly enactment national bank act likewise contained indication limited charges expressed function time amount owing interest compensation allowed law fixed parties use forbearance money damages detention see also hollowell southern building loan ny charges made borrower excess lawful rate interest whether called fines charges dues interest fact interest usurious petitioner suggests another source asserted requirement charges timeand authorized section notes charging interest rate allowed laws bank home state requires view interest charges expressed functions time amount owing surprising find requirement act pointless flat charge may course readily converted percentage indeed basis decisions holding flat charges violated state usury laws establishing maximum rates see craig pleiss hollowell supra apparent reason percentage charges permissible flat charges unlawful event common usage time national bank act prevents conclusion comptroller refusal give word rate narrow meaning petitioner demands unreasonable edition webster gives one definitions rate rice amount stated fixed thing webster american dictionary english language illustrate sense word provides following examples king may purchase territory dear rate rate interest prescribed law ibid cf bouvier supra defining rate exchange price bill drawn one country upon another may sold former finally petitioner contends late fees interest penalties support dichotomy points opinion meilink unemployment reserves meilink involved provision bankruptcy act disallowed debts owing governmental entities penalty except amount pecuniary loss sustained act penalty arose interest may accrued thereon according law obviously provision uses interest mean interest exacted commercial compensation interest exacted penalty word often takes narrow connotation expressly opposed another word car example broader meaning passage speaking cars taxis section term interest used contradistinction penalty reason include interest charges imposed purpose relevant meilink opinion citizens nat bank kansas city donnell involve section precisely predecessor rev stat section bank argued charge overdrafts violate state law setting ceiling interest rates inter alia overdraft charge penalty failure pay debt due dismissed argument hand suggestions twelve per cent charge overdrafts seem us need answer petitioner devotes much brief question whether meaning interest section constitutionally left defined law bank home question implicated comptroller regulation regulation entitled deference comptroller interpretation section unreasonable one decision california must affirmed ordered footnotes way claims petitioner complaint alleged breach duty good faith fair dealing unjust enrichment fraud deceit negligent misrepresentation breach contract also alleged violation cal bus code ann section west supp prohibiting unlawful business practices cal civ code ann section west invalidating unreasonable liquidated damages sherman citibank south dakota colorado appeals first circuit adopted interpretation california see copeland mbna america bank greenwood trust massachusetts dictum cert denied last page reply brief unpursued oral argument petitioner raised point deferring regulation case involving antecedent transactions make regulation retroactive violation bowen georgetown univ hospital reply brief petitioner might substance point regulation replaced prior agency discussed however addressing transactions occurred time clear agency guidance absurd ignore agency current authoritative pronouncement statute means