Wednesday, April 18, 2007

U.S. Supreme Court Denies Michigan's Effort to Protect Consumers

Wachovia wins. Consumers, beware.
From Reuters coverage: "The U.S. top court ruled on Tuesday that states cannot regulate lending by mortgage subsidiaries of national banks, blocking Michigan's efforts to enforce strict consumer protection laws on these subsidiaries."

All 49 other states supported Michigan's effort on behalf of consumers.

And here's a surprise from the dissenting opinion.
"It is especially troubling that the court so blithely pre-empts Michigan laws designed to protect consumers," Stevens wrote. He was joined by Chief Justice John Roberts and Antonin Scalia.