Morrison & Foerster Financial Services Report Vol. 4, No. 2
The Firm obtained a favorable National Bank Act preemption decision in Leae v. U.S. Bank, pending in Los Angeles Superior Court. The action challenged the bank’s ability to charge check-cashing fees to non-depositors. The court held that plaintiff’s claim brought under California’s unfair competition law was preempted by OCC’s regulations, specifically by 12 C.F.R. § 7.4007(b) (providing that state laws concerning “checking accounts” and “disclosure requirements” may not be applied to national banks).