Citizens Bank Faces Revived Mortgage Escrow Interest Lawsuit (1)

Citizens Financial Group Inc. will have to face a proposed class action over its failure to pay interest on mortgage escrow accounts as required under a Rhode Island law after a federal appeals court revived the case.

A judge who dismissed the case in 2022 did so before the US Supreme Court determined that courts must conduct a detailed review of whether state consumer financial protection laws are preempted by the National Bank Act before overturning them, the US Court of Appeals for the First Circuit said in a Monday opinion.

The high court in its May 2024 ruling ...