Wednesday, September 15, 2004

Illinois PIRG : Stop the Attack on State Consumer Protection Banking Laws

Dear Illinois PIRG supporter,

Recently, the nation's chief banking regulator, the federal Office of the Comptroller of the Currency (OCC), announced two new rules that eliminate the right of state governments to enact or enforce consumer laws against any national bank. These rules will increase predatory mortgage lending, allow credit card companies to intensify their unfair practices, and cause bank fees to rise even more astronomically.

Please take a moment to ask Congress to issue a legislative veto, giving the states back their right to protect their citizens from unfair banking practices. Then, ask your friends and family to help by forwarding this email to them.

To take action, click on the link below or paste it into your web browser:

http://pirg.org/alerts/route.asp?id=821&id4=ES

Background:

In January 2004, the previously obscure and little-noticed Office of the Comptroller of the Currency (OCC), part of the U.S. Treasury Department, asserted itself with two new regulatory rules. The rules give it and it alone sole legal authority to enact and enforce all consumer protection regulations applicable to both national banks (any bank with national or N.A. in its name) and even their state-licensed operating subsidiaries such as mortgage companies. The OCC's newly self-imposed authority even negates state banking laws where no federal law exists.


This decision eliminates longstanding state legislative authority to enact laws and prevents state attorneys general and financial regulators from enforcing violations of virtually any state law.
The OCC took these actions without Congressional approval, but the courts have unfortunately sided with recent efforts by the OCC and national banks to override, or preempt, state consumer laws, such as PIRG-backed ordinances banning ATM surcharges in San Francisco and Santa Monica, PIRG-backed anti-predatory lending laws in several states and a PIRG-backed credit card disclosure law in California. So, the best solution is to pass a "Congressional Motion of Disapproval," also known as a legislative veto.

State legislatures, attorneys general and governors have joined consumer, community and civil rights groups to fight back. If the OCC action is not overturned by Congress, predatory mortgage lending will increase, more banks will get involved in shabby payday loan-like "bounce protection" scams, credit card companies will intensify their unfair practices and bank fees will rise even more astronomically.

You can find out more about the OCC at PIRG's special OCC Watch website

http://www.pirg.org/occwatch

In 1932, Supreme Court Justice Louis Brandeis famously called the states "laboratories of democracy." Increasingly, however, strong state consumer and environmental protections are under assault by the Congress and federal regulators at the request of powerful special interests that prefer one weak federal regulatory system. You can find out more about the threats to all of our protections at the "PIRG Preemption Reports" page at

http://www.stopatmfees.com/occpirg.htm

To email your representative, click on the link below or paste it into your web browser:

http://pirg.org/alerts/route.asp?id=821&id4=ES

Then, ask your friends and family to help by forwarding this email to them.

Sincerely,

Rebecca D. Stanfield
Illinois PIRG Environmental Attorney
RebeccaS@illinoispirg.org
http://www.IllinoisPIRG.org

P.S. Thanks again for your support. Please feel free to share this e-mail with your family and friends.

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