Preservation of Federalism in Banking Act

The Preservation of Federalism in Banking Act (H.R. 3426) aims to ensure that national banks and federal savings associations follow state-level consumer protection laws. Under this bill, federal financial institutions would be required to comply with state rules regarding unfair business practices, consumer fraud, and procedures for debt collection, repossession, and foreclosure.

For everyday citizens, this legislation would mean that even if they bank with a large national institution, they would still be protected by the specific consumer rights and predatory lending laws enacted by their home state. Additionally, the bill would empower state attorneys general to take legal action against national banks to enforce these laws and would require federal regulators to more closely monitor and record individual consumer complaints.