Supreme Court Declines to Rule on Interest-on-Escrow Preemption

The US Supreme Court passed up a chance to determine whether state laws requiring banks to pay interest on mortgage escrow accounts are preempted by federal law.

The high court on Monday denied Citizens Financial Group Inc.’s request to review a September 2025 decision in the US Court of Appeals for the First Circuit that affirmed Rhode Island’s interest-on-escrow law.

The Supreme Court previously dealt with the interest-on-escrow question in its May 2024 ruling in Cantero v. Bank of America Corp. In that case, the high court left it up to lower courts to determine whether state consumer protection laws ...