AUGUSTA (AP) – A federal banking rule pre-empting any state regulation of national banks has stripped many Maine consumers of credit and banking protections that had been enacted over the years.

“Maine citizens are at risk of having a harder time resolving complaints they have against national banks without having the protections of the state laws,” said John Dieffenbacher-Krall, co-director of the Maine People’s Alliance.

“People will find themselves thwarted in trying to get issues resolved.”

A wide range of Maine consumer laws have been pre-empted by the federal Office of the Comptroller of the Currency, which regulates federally charted banks that provide credit card and other financial services to thousands of Mainers, said Will Lund, director of the Maine Office of Consumer Credit Regulation.

“This rule is saying we have no authority over them,” he said.

Banks, credit unions and other financial institutions are licensed to operate as a national or state institution. State regulators have had authority over national banks and financial institutions.

Maine laws dealing with customer privacy, no-call lists, predatory lending practices, false and deceptive advertising and other consumer credit laws are affected by the rule, which was enacted last January.

Lund, who opposes the federal comptroller’s action, said he has taken steps to help Maine consumers deal with complaints.

The National Conference of State Legislatures, the National Governor’s Association and the National Association of Attorneys General all oppose the federal pre-emption.

Maine Attorney General Steve Rowe signed a letter along with every other attorney general in the country opposing the rule and listing several examples of when they acted to protect consumers and federal regulators took no action.

Others in Maine’s congressional delegation also oppose the pre-emption.

“As a former state financial regulator, I have seen firsthand the effectiveness of state regulations in protecting banking consumers,” said Sen. Susan Collins. “Although I recognize that the comptroller has a legitimate interest in ensuring that national banks operate under a uniform set of basic rules, I believe that states still have a vital role to play in protecting citizens regardless of where they choose to bank.”

Collins, who was the state commissioner of Professional and Business Regulation, said she was unsure the national comptroller has enough resources to police national banks.

AP-ES-04-27-04 0216EDT