The OCC has filed a reply in support of its cross-motion for summary judgment in the lawsuit filed by state AGs to enjoin the OCC’s final rule (Rule) purporting to override the Second Circuit’s Madden decision as to national banks and federal savings associations. The filing of the OCC’s reply concludes the briefing on the
Preemption
State AGs file opposition to OCC’s summary judgment motion in lawsuit challenging Madden-fix rule
The Attorneys General of California, Illinois, and New York have filed their opposition to the OCC’s cross-motion for summary judgment in their lawsuit to enjoin the OCC’s final rule (Rule) purporting to override the Second Circuit’s Madden decision as to national banks and federal savings associations. In their filing, the AGs also reply to the…
Eight state attorneys general file lawsuit seeking to overturn OCC’s true lender rule
On January 5, 2021, the Attorneys General of New York, California, Colorado, the District of Columbia, Massachusetts, Minnesota, New Jersey, and North Carolina filed a voluminous Complaint in federal district court for the Southern District of New York against the OCC and Acting Comptroller of the Currency Brian Brooks, seeking to set aside the final…
Conference of State Bank Supervisors files new lawsuit to block OCC approval of Figure Technologies charter application
The Conference of State Bank Supervisors (CSBS) has filed a lawsuit in D.C. federal district court to block the OCC from granting a national bank charter to Figure Technologies Inc. According to the complaint, Figure, through a subsidiary, is currently licensed in 49 states and the District of Columbia as a mortgage lender, consumer lender,…
OCC Chief Counsel issues interpretive letter addressing federal preemption of state law
The Chief Counsel of the Office of the Comptroller of the Currency has issued Interpretive Letter 1173, addressing national bank and federal savings association preemption of state law under the Dodd-Frank Act.
The Interpretive Letter clarifies that the special Dodd-Frank preemption requirements for “preemption determinations” are limited as follows:
- “Preemption determinations” are confined to
…
Plaintiffs file appeals with Second Circuit from district court decisions holding NBA preempts application of state usury law to securitized credit card receivables
The plaintiffs in Cohen v. Capital One Funding, LLC and Petersen v. Chase Card Funding, LLC have filed appeals with the Second Circuit from the decisions of two New York federal district courts that held the National Bank Act (NBA) preempts their claims that the interest charged on credit card receivables assigned to affiliated securitization…
This week’s podcast: A close look at the OCC’s “true lender” proposal
After reviewing the legal foundation for federal preemption of state law limits on interest, we discuss the OCC’s proposed approach for determining when a bank is the “true lender” in programs with non-bank agents, our arguments in support of the proposal made in our comment letter to the OCC, key arguments made in support…
Maine federal district court rules FCRA preempts 2019 amendments to state’s credit reporting law
A Maine federal district court ruled that that two 2019 amendments to Maine’s credit reporting law are preempted by the federal Fair Credit Reporting Act and granted the motion for judgment filed by the plaintiff, the Consumer Data Industry Association (CDIA).
One of the amendments prohibited a consumer reporting agency (CRA) from reporting medical debt…
Second NY federal district court holds NBA preempts application of state usury law to securitized credit card receivables
In Cohen v. Capital One Funding, LLC, the federal district court for the Eastern District of New York joined the federal district court for the Western District of New York in Petersen v. Chase Card Funding, LLC in holding that the National Bank Act (NBA) preempts claims that the interest charged on credit card…
NY federal district court holds NBA preempts application of state usury law to securitized credit card receivables
A New York federal district court in Petersen v. Chase Card Funding, LLC held that the National Bank Act (NBA) preempted the plaintiff’s claims that the interest charged on his credit card account violated New York usury law.
The named plaintiff was the holder of a credit card issued by JPMorgan Chase Bank, N.A. (JPMCB). …