Lyons v. PNC Bank, N.A.
The Truth in Lending Act and its implementing regulation, Regulation Z, include important protections for credit card borrowers. Among these protections is a prohibition on “offsets,” which forbids lenders from unilaterally withdrawing money from consumers’ deposit accounts to cover debts incurred through credit card plans.
The Bureau filed an amicus brief arguing that the text, history, and structure of Regulation Z make clear that this protection extends to borrowers who have home-equity lines of credit that can be accessed by a credit card. The brief also discusses an exception for home-equity lines of credit in Regulation X, which implements the Real Estate Settlement Procedures Act.