Sacramento, CA — A federal judge has struck down a portion of a California law that restricts banks from selling consumers private information to their affiliates.
U.S. District Judge Morrison C. England Jr. ruled yesterday that the state law is pre-empted by federal rules.
The American Bankers Association, the Financial Services Roundtable and Consumer Bankers Association had sued California Attorney General Bill Lockyer, arguing that the federal Fair Credit Reporting Act already regulates their ability to sell consumer information to affiliates in other lines of business.
The California law, which is the strictest in the nation, forced companies to offer consumers the right to opt-out of sharing such information.
The attorney general´s office says it´s weighing whether to appeal the ruling.