Washington Court of Appeals Affirms Preemption of State Law Claims In Connection With Lending Practices


In McCurry v. Chevy Chase Bank, an appeal of a dismissal of a nationwide class action filed against Chevy Chase Bank, F.S.B., a three-judge panel of the Washington Court of Appeals, Division One, recently affirmed a ruling that “regulations issued by the federal Office of Thrift Supervision (“OTS”)…expressly preempt state statutes and judicial decisions that purport to regulate ‘loan related fees.’” In other words, federally licensed savings banks are subject only to OTS regulation regarding lending operations.

The McCurrys alleged that “Accumulated Fax Fees” and a “Notary Fee” assessed in paying off their home loan (1) was a breach of the deed of trust securing their loan, (2) unjustly enriched Chevy Chase, and (3) violated Washington’s Consumer Protection Act (“CPA”). On appeal, the McCurrys argued that these fees are not “loan related fees” as defined by 12 C.F.R. § 560.2 (preempting state regulations of “loan related fees”). The Court of Appeals, however, agreed with Chevy Chase, interpreting “loan related fees” to refer “precisely” to the fees at issue in this case.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Lane Powell PC | Attorney Advertising

Written by:


Lane Powell PC on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.