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.
$2.4M
New York Attorney General Letitia James announced settlements with Carelon after investigations found inaccurate mental health provider directories and improper denials of substance use disorder treatment using unapproved criteria. Carelon must pay $2.35 million in penalties, fees, and costs, provide eligible members with restitution or repayment, and change its provider-directory and coverage-review practices.
The New York Attorney General issued a consumer alert and online guide about scams targeting service members and veterans, including phishing and credit-monitoring scams that may misuse personal information. The release provides steps for protecting information and reporting suspected scams; it does not announce an enforcement action or monetary penalty.
New York’s investigation found that T-Mobile’s affordable broadband offerings did not meet the New York Affordable Broadband Act’s requirements, including because data caps sharply reduced customer speeds and plan information was hidden from search engines. Under an agreement, T-Mobile will remove the caps, offer plans in all areas where it provides home internet service, and make plan information easier to find.
The New York Attorney General issued guidance explaining Shield Law protections for reproductive and gender-affirming health care information and the steps required before responding to covered information requests. This is guidance, not an enforcement action against a named company; it describes potential penalties for improper disclosure or failure to follow required procedures.