Cuomo vs. Clearing House Represents Victory for Taxpayers

WASHINGTON, June 29 /PRNewswire-USNewswire/ -- The following is a statement
from Michael Calhoun - President, Center for Responsible Lending:

"Today the Supreme Court announced a decision that will play a major role in
how and whether consumer protection laws are enforced. In AndrewCuomo vs. the
Clearing House Association and the Office of the Comptroller of the Currency
(OCC), the court overturned lower court decisions, determining that states can
enforce their own civil rights laws, including pursuing claims against
national banks, when necessary, to ensure that banks follow the law.

This Supreme Court decision is a victory for taxpayers, who have suffered
enormously as a result of abusive business practices in all types of lending.
This decision will help to restore confidence in the financial services
industry and the national economy.

Today's decision addressed only whether states could enforce their valid laws.
As Congress considers how to overhaul the federal regulation of financial
products, it must determine whether Washington can override, and thereby
nullify, state civil rights and consumer protection law.

One of the key lessons of today's financial crisis is that federal efforts to
prevent abusive financial practices should complement, rather than supplant,
state consumer protection and civil rights laws. Previously, many states tried
to address dangerous lending practices by passing laws to address some of the
most egregious abuses. But their efforts were thwarted by federal regulators,
who argued that state consumer protection laws don't apply to
federally-supervised banks.

Any plan passed by Congress to fix our broken financial system should not
strip the states' authority to address local issues and protect their own
citizens, especially since lending practices are constantly evolving and can
vary considerably by location. Federal law should be a floor, not a ceiling,
for preventing the type of discriminatory and reckless lending that triggered
today's financial crisis."

The Center for Responsible Lending submitted an amicus brief in the Cuomo case
in partnership with these organizations:

AARP
National Consumer Law Center
U.S. Public Interest Research Group
National Association of Consumer Advocates
South Brooklyn Legal Services
Consumers Union
Public Citizen
New York City's Department of Consumer Affairs
Consumer Federation of America

For more information from CRL contact: Kathleen Day at (202) 349-1871
kathleen.day@responsiblelending.org; or Ginna Green at (510) 379-5513
ginna.green@responsiblelending.org; or Charlene Crowell at (919) 313-8523
charlene.crowell@responsiblelending.org.

About the Center for Responsible Lending
The Center for Responsible Lending is a nonprofit, nonpartisan research and
policy organization dedicated to protecting homeownership and family wealth by
working to eliminate abusive financial practices. CRL is affiliated with
Self-Help, one of the nation's largest community development financial
institutions.

SOURCE Center for Responsible Lending

Kathleen Day of Center for Responsible Lending, +1-202-349-1871,
kathleen.day@responsiblelending.org