The Federal Court of Appeals for the Ninth Circuit ruled that California’s disclosure requirements for “convenience checks” sent to credit card customers is preempted by the National Bank Act. In affirming the trial court’s dismissal, the Court ruled that the California provision is expressly preempted by the National Bank Act’s “incidental power” to “loan money on personal security.” Rose v. Chase Bank USA, NA, 9th Cir. No. 05-56850, Jan. 23, 2008.
Alert January 29, 2008