A California appellate court has ruled against nullifying the city of Oakland's predatory lending ordinance, in response to a lawsuit brought by the American Financial Services Association.The court found that Oakland's ordinance is not pre-empted by a more lenient state law, as AFSA had contended. It also reversed an earlier decision that found that Oakland's exemption of federally chartered institutions violated the state's parity principles. The law was written to cover only state-chartered banks. AFSA says it will appeal the decision. Jon Jaffe of Kirkpatrick & Lockhart LLP, a firm that handles litigation for the financial sector, recommended that lenders prepare to comply with Oakland's ordinance.
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