Compliance Bulletin

Supreme Court Allows TISA Suit
August 12, 2013

Even though the Truth in Savings Act, as amended, does not include a provision allowing private law suits, the California Supreme Court allowed a class action claim to proceed on a bank based on alleged TISA violations.The claim was made under California’s unfair competition law (Business & Professions Code Section 17200 et seq.), which the Court ruled allowed claims on a violation of any law even where (as with TISA) Congress had removed a provision in the law that had permitted private suits.The Court held that, because TISA included another provision that allows enforcement of consistent state laws, Congress intended by the “savings clause” to allow the UCL action. The fact that Section 17200 has nothing to do with the law of account disclosures is not a bar, according to the court, because if violation of a borrowed law is tantamount to a violation of the UCL, then the substance of the UCL claim is sufficiently similar (to TISA) to come within the savings clause. Please See CBA’s Regulatory Compliance Bulletin for more information.

 

Commands