In WFS Financial, Inc. v. Superior Court (De La Cruz), ___ Cal.App.4th ___ (June 15, 2006), the plaintiff alleged that the defendant (an operating subsidiary of a federal savings association) violated the disclosure requirements of the Rees-Levering Automobile Sales Finance Act (Civ. Code §§ 2981 et seq.) and thus the UCL's "unlawful" prong. The Court of Appeal (Third Appellate District) held that the Home Owners’ Loan Act (12 U.S.C. §§ 1461 et seq.) preempted both claims: "De La Cruz cannot use the UCL to enforce a statutory violation where the underlying statute is preempted by federal law." Slip op. at 26.
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