The U.S. Court of Appeals for the Seventh Circuit issued a highly significant order on May 8, 2026 in the closely watched litigation challenging the Illinois Interchange Fee Prohibition Act (“IFPA”), vacating the district court’s judgment and remanding the case for further proceedings in light of the OCC’s recently issued Interim Final Rule and preemption order.… Continue Reading
Preemption
Second Circuit Reaffirms Preemption of New York’s Mortgage Escrow Interest Law, Setting Stage for Potential Supreme Court Rematch with First Circuit
By Alan S. Kaplinsky on
In a decision issued May 5, 2026, a Second Circuit Court of Appeals panel in Cantero v. Bank of America, N.A., August Term 2024, Nos. 21-400, 22-403, once again held that New York’s General Obligations Law § 5-601, which requires mortgage lenders to pay at least 2% interest on escrow accounts is preempted by the National Bank Act (NBA) as applied to national banks like Bank of America.… Continue Reading
OCC Doubles Down on Interchange Fee Preemption Against the Backdrop of High-Stakes Seventh Circuit Litigation and a Post-Loper Bright World
By Alan S. Kaplinsky, Adam Maarec & Ronald K. Vaske on
In a pair of coordinated actions on April 24, 2026, the Office of the Comptroller of the Currency (OCC) moved to reaffirm and expand the scope of National Bank Act (NBA) preemption to credit and debit card interchange fees and the use of electronic payment transaction data.
The OCC issued (i) an interim final rule clarifying that interchange fees are protected “non-interest charges,” and (ii) an interim final order expressly preempting the Illinois Interchange Fee Prohibition Act (IFPA).… Continue Reading
Today’s podcast episode: Breaking Developments in National Bank Act Preemption
By Ballard CFS Group on
Our podcast show this week consists of a webinar we produced on November 10, 2025, titled, “Breaking Developments in National Bank Act Preemption.” Join our panel of top legal experts as they break down how landmark court rulings are changing the rules for national banks, examine the growing application of state law, and discuss what these changes mean for compliance, risk, and the future of consumer financial services.… Continue Reading
Gould says OCC will take steps to promote federal preemption
By Ballard CFS Group on
Posted in OCC, Preemption
Comptroller of the Currency Joseph Gould is vowing that his agency will take a variety of steps to promote federal preemption, Law360 reported.
Speaking as part of a fireside chat at the Clearing House’s annual conference, Gould said that defending preemption will require rebuilding its political legitimacy, the news service reported.… Continue Reading
Today’s podcast episode: First Circuit Rules National Bank Act Does Not Preempt Rhode Island State Law: Is There Still Any Advantage to Having a National Bank Charter?
By Ballard CFS Group on
As our regular podcast listeners know, we ordinarily release a new podcast show once each week on Thursday. On a very few occasions, we have released a special extra podcast show during the same week. We have only done that when a development occurs which we feel is of extraordinary importance and time sensitive.… Continue Reading
First Circuit Rules National Bank Act Does Not Preempt Rhode Island State Law
By Joseph J. Schuster, John L. Culhane, Jr., Ronald K. Vaske, Richard J. Andreano, Jr. & Alan S. Kaplinsky on
Posted in OCC, Preemption
HERE IS A LINK TO OUR SPECIAL PODCAST SHOW ABOUT THIS CASE AND ITS ENORMOUS IMPLICATIONS RELEASED ON WEDNESDAY, OCTOBER 1.
On September 22, 2025, a panel of the First Circuit Court of Appeals issued a significant opinion in Conti v. Citizens Bank, N.A., holding unanimously that the National Bank Act does not preempt a Rhode Island statute requiring mortgage lenders to pay interest on mortgage escrow accounts.… Continue Reading
OCC confirms that its national bank preemption regulations are valid and require no changes despite Cantero Supreme Court opinion
By Alan S. Kaplinsky on
Posted in OCC, Preemption
The OCC has mounted a vigorous defense of federal preemption, calling it “a cornerstone of the dual banking system, under which federally and state-charted banks operate alongside each other.”
“Federal preemption has proven to be a powerful enabler of local and national prosperity and growth,” Acting Comptroller Rodney Hood wrote in a letter to Brandon Milhorn, President and CEO of the Conference of State Bank Supervisors, who called for rescinding the preemption rules.… Continue Reading
Wisconsin Appeals Court Rejects National Bank Act Preemption
In a significant ruling on February 18, 2025, the Wisconsin Court of Appeals determined that the National Bank Act (NBA) does not preempt the procedural “right to cure” notice requirements mandated by the Wisconsin Consumer Act (WCA), reversing a judgment in two debt collection actions.
The court, thereby, determined that this state-level consumer protection was not preempted by the NBA.… Continue Reading
This week’s podcast episode: The Cantero Opinion: The Supreme Court Leaves National Bank Preemption in Limbo
By Mindy Harris on
On May 30, the Supreme Court issued its opinion in Cantero v. Bank of America, reversing and remanding the case to the Second Circuit. Rather than articulating a bright line test for preemption, the Supreme Court instructed the circuit court to conduct a “nuanced analysis” to determine whether the National Bank Act preempts a New York state law that requires the payment of 2% interest on mortgage escrow accounts.… Continue Reading