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.
The states seek a court order wiping the OCC's rule off the books, restoring Oregon's interest-on-escrow law, and leveling the playing field between lenders and borrowers.
In-house legal teams at mortgage lenders and servicers should review their mortgage loan agreements and servicing contracts to ensure compliance with state escrow interest laws. The OCC's rule sought to exempt national banks from these requirements, but this lawsuit challenges that rule, so companies should monitor developments and ensure their contracts do not rely on the invalidated rule. Additionally, contracts with third-party servicers should include provisions requiring compliance with applicable state laws regarding escrow interest.
Entity
Office of the Comptroller of the Currency
Industry
Financial ServicesOfficial Press Release
https://www.doj.state.or.us/media-home/news-media-releases/ag-rayfield-sues-to-block-trumps-lawless-handout-to-big-banks/
States escrow interest complaint
https://www.doj.state.or.us/wp-content/uploads/2026/08/States-escrow-interest-complaint.pdf
Oregon Attorney General Enforcement Page
https://www.doj.state.or.us/consumer-protection/
"Office of the Comptroller of the Currency (OCC)"
"Oregon law that requires mortgage lenders to pay interest on the money they require borrowers to deposit into escrow accounts"
"state laws – including Oregon’s – requiring lenders to share the money they earn on borrowers’ escrowed funds"
"The case challenges a decision by a little-known but powerful federal agency, the Office of the Comptroller of the Currency (OCC), to invalidate an Oregon law"
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.
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.
$694.0M
Oregon Attorney General Dan Rayfield announced a $694 million multistate settlement with Credit Acceptance Corporation (CAC), a subprime auto lender, resolving allegations that CAC originated unaffordable loans and allowed dealers to 'pack' unwanted Vehicle Service Contracts and Guaranteed Asset Protection products into consumer loans. The settlement provides $60 million in cash restitution, $634 million in debt relief, and injunctive reforms including off ramps for risky loans, enhanced disclosures, and dealer monitoring.
$384.2M
Abbott Laboratories agreed to pay more than $384 million — including $977,558 to Oregon — to resolve allegations that it sold powder infant formula and nutritional therapy products made in unsafe manufacturing conditions to Medicaid and food assistance programs such as WIC between January 2018 and December 2022. Investigators found Abbott failed to maintain manufacturing equipment and control water at its Sturgis, Michigan, and Casa Grande, Arizona, facilities, and withheld test results showing contamination during FDA inspections in 2019 and 2022. The settlement was negotiated by the National Association of Medicaid Fraud Control Units on behalf of the federal government and 39 states.
Oregon Attorney General Dan Rayfield, leading a bipartisan coalition of 48 other state and territorial attorneys general, sent a letter urging the FCC to strengthen its 'Know Your Upstream Provider' (KYUP) rule so phone companies must properly vet, continuously monitor, and cut ties with upstream providers that facilitate illegal robocalls and caller ID spoofing. The coalition asks the FCC to set minimum vetting standards, require periodic re-checks rather than one-time contract reviews, strengthen caller ID authentication across the call chain, impose meaningful penalties, and mandate record-keeping for investigators. No fine or injunction was imposed; the letter notes Americans received more than 29.6 billion scam robocalls and texts last year and lost nearly $2 billion to these scams.
Attorney General Dan Rayfield and a coalition of 21 attorneys general and Pennsylvania filed lawsuits against the U.S. Department of Transportation, FMCSA, and AAMVA to block demands for a database containing personal information of 17 million commercial drivers. The federal government threatened to withhold $10 million in funding unless the data was turned over, which the coalition argues violates privacy law.