Burr Alert: Preemption of State Consumer Protection Laws Under the Dodd-Frank Act

February 19, 2013


The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act” or the “Act”), signed into law in 2010, contains a series of regulatory reforms aimed in part to combat what was perceived as lax financial regulation that led to the recession of the late 2000’s.1 One way the Dodd-Frank Act seeks to tighten the reins on national banking institutions is by strengthening the legal standards for the preemption of state laws, thereby making it harder for banks to avoid liability under state law. Whereas prior to Dodd-Frank’s enactment, national banking institutions enjoyed heavy deference in the area of preemption of state laws, Dodd-Frank curbs this deference by requiring a case by case determination of preemption and requiring that a state consumer financial services law conflict with the exercise of a national bank’s powers before the state law can be preempted. Further, the Dodd-Frank Act strips subsidiaries of national banks of the same preemption protection enjoyed by national banks and subjects federally-chartered savings banks and federally-regulated savings associations to the same preemption standards as those applicable to national banks. The mandated “case by case” determination standard injects much uncertainty into the preemption analysis and ensures much preemption litigation for years to come.

Download full alert

Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Featured Attorneys

send article


  • “Dwight is a very knowledgeable corporate lending attorney. He seems to have specific competencies around multi-bank and syndicated loans, and is fair and practical. He has a good awareness of not only legal aspects of representing a bank in a commercial loan transaction, but also an awareness of the distinction between legal and business issues and the practical implications of each."

    -Chambers 2012

  • “Keith has provided excellent real estate legal support for myself and my colleagues in good times and bad. I have always found Keith's work timely and reasonably priced and would recommend him without a second thought.”

    -Michael Green, CNL Bank

  • “I have found the ERISA group, and especially Logan Hinkle, to be knowledgeable and very responsive as we navigate the changes in HIPAA, PPA and more recently PPACA to make sure we are in compliance and our documentation in order.  I can recommend them highly.”


  • "I found Mr. Ahern and Mr. Potter to be extremely responsive to my requests and knowledgeable of the subject matter. I have found that they understand and appreciate their fiduciary duty and take such responsibilities with the utmost care."

    -Chambers 2013

  • "Like any commercial litigation practice, it takes a while to get completely up to speed on how a client's corporation works. Once the understanding was there, Burr & Forman put their head down and worked very hard for excellent results."

    -Best Lawyers 2012