The United States Supreme Court shocked the national banking industry today in their ruling in the case CUOMO V. CLEARING HOUSE ASSOCIATION, 08-453. The U.S. Supreme Court ruled in a 5-4 decision that state regulators have the authority to investigate national banks for lending discrimination. In 2004, the Office of the Comptroller of the Currency (OCC) issued a regulatory change that made it extremely difficult for state regulators to enforce state laws against national banks. The Cuomo v. Clearing House Association case is a tremendous decision for consumers and state regulators because the OCC.
The OCC has been routinely criticized for not investigating consumer complaints against national banks. This decision means that states can now enforce their own state laws against national banks so long as they follow due process procedures set forth under state law. This is an enormous victory for not only consumers but also state bank regulators.