The Department of Justice and National Economic Council should coordinate with the Office of the Comptroller of the Currency to ensure that it continues to uphold a strong national bank preemption standard, the American Bankers Association said today.
The DOJ and NEC recently requested information about state laws that adversely affect interstate commerce and business activities in other states. In a letter, ABA said that under the U.S. dual banking system, banks of all sizes freely determine whether to pursue a state charter or a national charter based on how they want to operate and innovate. However, state legislatures across the country have enacted state consumer finance laws “that directly challenge or otherwise ignore over 160 years of precedent and run afoul of national bank preemption.”
“These attempts are not limited to one issue area or one state, creating a patchwork that not only significantly burdens commerce within the respective state but also between states, resulting in constrained choice and unnecessary costs for consumers,” ABA said.
ABA cited several examples of such state laws, on subjects such as supervision, debt collection, consumer privacy and artificial intelligence.
“For the American economy to reach its full potential, federal policymakers should work to address certain state laws that may be preempted by existing federal authority,” ABA said.
