OTS: California card disclosure law doesn't apply to thrifts

WASHINGTON – The Office of Thrift Supervision has ruled that federally chartered thrifts do not have to comply with California’s credit card disclosure law, making the OTS the third federal agency to weigh in against the measure. The Office of Comptroller of the Currency (OCC) and NCUA have already weighed in against the law, which the court has had on hold pending litigation from a coalition of banking associations, credit card issuers and credit union associations. “OTS is authorized by federal law to provide federal savings associations with a uniform national regulatory environment for their lending operations,” said OTS Director James E. Gilleran. “This enables federal thrifts to provide low-cost credit safely and soundly. The California law would require federal thrifts to treat customers in California differently, imposing increased costs and an undue regulatory burden on the ability of these institutions to operate nationally.” “NAFCU welcomes the support of the OTS and we firmly believe that all federally chartered financial institutions are exempt from the California credit card statute,” said Bill Donovan, NAFCU’s general counsel.