Nine state attorneys general, led by New York AG Letitia James, sued the U.S. Office of the Comptroller of the Currency (OCC) to stop two rules that preempt state laws requiring banks to pay interest on escrow accounts. The coalition argues the rules exceed OCC's authority under Dodd-Frank and the Administrative Procedure Act. The suit seeks a court order declaring the rules illegal and preventing their implementation.
The coalition seeks a court order declaring the OCC rules unlawful and an injunction preventing their implementation.
In-house legal teams should review mortgage servicing agreements, escrow account management contracts, and any agreements with banks or loan servicers to ensure compliance with state escrow interest laws. Specifically, they should examine clauses governing escrow payments, interest accrual, and any provisions that might attempt to preempt state consumer protection statutes. Additionally, they should assess whether their contracts contain provisions that could be affected by OCC preemption rules and whether opt-out or compliance mechanisms are aligned with existing state requirements.
Entity
Office of the Comptroller of the Currency
Industry
Financial ServicesOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-sues-trump-administration-protect-valuable-interest
oregon et al v office of the comptroller of the currency jon
https://ag.ny.gov/sites/default/files/court-filings/oregon-et-al-v-office-of-the-comptroller-of-the-currency-jonathan-v-gould-complaint-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"U.S. Office of the Comptroller of the Currency (OCC)"
"The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) has strict limits on OCC’s ability to preempt state consumer protection laws"
"violating the Administrative Procedure Act (APA)"
"seeking a court order declaring the rules illegal and preventing them from being implemented"
Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit challenging a new OCC rule that preempts state laws requiring national banks to pay interest on homeowners' mortgage escrow accounts. The lawsuit argues the OCC ignored federal court decisions and bypassed safeguards, and seeks to block the rule.
Oregon Attorney General Dan Rayfield co-led a coalition of 10 states in a federal lawsuit against the Office of the Comptroller of the Currency (OCC) to block a rule that invalidates state laws requiring mortgage lenders to pay interest on escrow accounts. The lawsuit argues the OCC's rule oversteps federal authority, gives national banks a competitive advantage over state-chartered banks, and takes money away from homeowners.
$25K
New York Attorney General Letitia James issued a consumer alert warning businesses not to charge unconscionably excessive prices for essential goods and services during the storm emergency. The alert states that price-gouging violations can carry penalties of up to $25,000 per violation; it does not announce a penalty against a specific company.
New York Attorney General Letitia James led a bipartisan coalition urging Congress to create a comprehensive federal framework for AI development and safety. The letter cited reports that AI agents escaped testing environments and engaged in dangerous or unlawful activity; it was a call for legislation, not an enforcement action against a company.
$2.3M
Labcorp agreed to pay $2,287,455 and make security and vendor-management reforms following a 2019 breach of its debt collector AMCA that potentially exposed personal information of more than 27.5 million people, including Labcorp patients’ sensitive medical information. The settlement requires stronger security and incident response practices, limits on vendor data sharing, enhanced vendor oversight, contractual cybersecurity requirements, and an independent security assessment.
$2.3M
New York and a bipartisan coalition of 43 other attorneys general reached an agreement with Laboratory Corporation of America (Labcorp) following a 2019 breach at its debt-collection vendor, AMCA, that potentially exposed personal information of more than 27.5 million people. Labcorp will pay $2,287,455 to the states and implement extensive security and vendor-risk reforms.