​AG Bonta joined a bipartisan coalition of 23 AGs and a group of state-level bank regulators, including the California Department of Financial Protection and Innovation, in opposing a pair of rules proposed by the Office of the Comptroller of the Currency (OCC) that would preempt state laws that require national banks to pay minimum interest on mortgage-escrow accounts. In states across the country, including California, national banks are required to pay minimum interest on mortgage-escrow accounts to comply with consumer protection laws. These laws are designed to prevent lenders from profiting from interest-free deposits at the borrower’s expense, are consistent with limitations enacted by Congress, and have been found lawful by the U.S. Supreme Court.  

“States play a crucial role in consumer financial protection. California has laws protecting consumers from abusive lending practices by Big Banks, including when it comes to holding money in a mortgage escrow account. Now, the federal government is attempting to preempt these important laws and leave consumers in the dust. Alongside a bipartisan coalition of attorneys general, I’m standing up for states’ rights to enforce state laws that protect consumers from financial exploitation.” – AG Bonta