PNC Bank Loses Appeal Seeking Arbitration of Account Set-Off

A PNC Bank NA customer can use the courts to challenge the bank’s decision to take money from his deposit accounts to pay off his home equity line of credit, the Fourth Circuit ruled, rejecting the bank’s bid for arbitration.

The Truth in Lending Act prohibits consumer agreements related to residential mortgage loans from requiring arbitration, the U.S. Court of Appeals for the Fourth Circuit ruled Tuesday, interpreting a 2013 statutory amendment made by the Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, PNC can’t force arbitration of claims by William Lyons Jr. related to either of ...