823 F. Supp. 2d 387
S.D.W. Va2011Background
- Cline, a West Virginia resident, sued Bank of America (BOA), a North Carolina national bank, for abusive debt-collection practices after a motorcycle loan default.
- BOA engaged in extensive collection activity, including 400+ calls to Cline and his business, some after he stated he had counsel.
- Cline asserted WVCCPA claims (Counts I, II, III, IV, V) and sought injunctive relief, damages, expunction of the loan, punitive damages, and fees.
- BOA removed the case to federal court on November 12, 2010 and moved for judgment on the pleadings on April 4, 2011.
- The court analyzes NBA preemption under the pre-Dodd-Frank framework and the post-Dodd-Frank amendments, including 12 U.S.C. § 25b and 12 C.F.R. § 7.4008(e).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether WVCCPA claims are preempted by the NBA as amended by Dodd-Frank. | Cline argues WVCCPA is not preempted as a generally applicable state law. | BOA contends state debt-collection provisions are preempted under NBA and Dodd-Frank. | Not preempted under Barnett Bank standard. |
| Applicability and retroactivity of § 25b and amended § 7.4008 to this case. | Dodd-Frank provisions apply to preemption analysis. | Amendments govern post-enactment actions; retroactivity debate. | Amendments apply; retroactivity found not to impair BOA rights; case proceeds under new framework. |
| Whether Barnett Bank conflict preemption governs preemption analysis post-Dodd-Frank. | Barnett Bank framework supports state-law protection for consumers. | NBA preemption should follow Barnett Bank conflict standard. | Barnett Bank conflict preemption governs; no irreconcilable conflict found. |
| Do WVCCPA provisions directly and specifically regulate financial transactions or accounts of BOA? | WVCCPA broadly addresses debt-collection practices. | WVCCPA falls outside “state consumer financial laws” as not directly regulating transactions. | WVCCPA provisions are not state consumer financial laws; not preempted. |
Key Cases Cited
- Watters v. Wachovia Bank, N.A., 550 U.S. 1 (U.S. 2007) (establishes NBA regulatory framework and OCC oversight)
- Lomax v. Bank of America, N.A., 435 B.R. 362 (N.D.W.Va. 2010) (pre-Dodd-Frank preemption analysis in Western District of West Virginia)
- Smith v. BAC Home Loans Servicing, LP, 769 F.Supp.2d 1033 (S.D.W.Va.2011) (treats WVCCPA as not blocking federal preemption under NBA)