Protecting Consumers: State Suits, National Banks

Law360, New York (July 28, 2009, 12:03 PM EDT) -- In a departure from previous rulings affirming the preemptive power of the National Bank Act in the regulation of national banks, the United States Supreme Court recently ruled in Cuomo v. Clearing House Association LLC, 557 U.S. ___ (2009), that individual states may sue national banks to enforce state consumer protection laws.

The Supreme Court rejected the position of the Office of the Comptroller of Currency (“OCC”) that states were prohibited from initiating litigation to enforce their state laws against national banks.

The Cuomo decision may...
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