Section 85 of the National Bank Act and Consumer Welfare

The Supreme Court's decision in Marquette was a major development fostering the growth of the credit card industry. Marquette effectively deregulated a broad category of bank lending by establishing that section 85 of the National Bank Act preempted state regulation of charges for loans to citizens by out-of-state banks. The seventeen years after Marquette have seen a dramatic expansion in the credit card industry, which has permanently changed the way that consumers pay for goods and services. The economic benefits of that decision have been proven in the market place.

Current efforts to narrow or override Marquette are, by economic measures, misguided. Consumers would be best served if those efforts were abandoned.