Judge hears Royal Bank case. (Judge Marjorie Lawrence; Royal Bank of Pennsylvania)

Days after the New Jersey Supreme Court applied the state's consumer fraud law to banks and other lenders, the question of the reach of Pennsylvania's law came up in arguments over a Montgomery County lawsuit.

Seven years old, the case was brought by consumers who bought certificates of deposit (CDs) from Royal Bank of Pennsylvania in the 1980s. Their gripe with Royal centers on advertisements they say led them to believe the CD yield was the same as the stated interest rate, when it was not.

Narberth-based Royal says it sold what it advertised, and its ads were in line with what its regulators required.

Last week, the bank asked Montgomery County Court of Common Pleas Judge …