In a first-impression ruling, a three-judge panel of the U.S. Court of Appeals for the Tenth Circuit ruled 2-1 to affirm a lower court decision that found bank account overdraft charges do not violate the National Bank Act of 1864.

Berkley V. Walker is a customer at the Bank of Albuquerque, according to the Tenth Circuit’s majority opinion. When Walker overdrew his checking account his bank covered the overdraft and charged him $6.50 per day for every day his account remained in the red.