Credit Cards Lose Federalism Battle in New York
New York’s Court of Appeals last week reversed a lower court decision that claimed that the Federal Truth-in-Lending laws preempted the state’s consumer protection legislation in a victory for consumers (read the Forbes article for more information).
Banks, including Capital One and probably others - have been trying to jump on the federalism bandwagon to have a myriad of state investigations and laws preempted by federal legislation and regulation. While the New York decision certainly won’t end the debate about the extent that national banks and credit card issuers should have to comply with the diverse regulations of the fifty states, it is a good sign that the pro-consumer sentiment of the Federal Reserve and Congress may be making its way into the courts.
