American Fintech Council opposes state efforts to opt out of DIDMCA

The American Fintech Council (AFC) is actively opposing legislation that seeks to opt states out of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). The AFC warns that such legislative measures are legally questionable and could limit access to responsible credit, putting state-chartered banks at a competitive disadvantage.

Phil Goldfeder, CEO of the AFC, has been vocal in his opposition. He recently traveled to Salem to testify against Oregon's House Bill 2561 before the House Committee on Commerce and Consumer Protection. Goldfeder stated, "DIDMCA opt-out bills are a misguided attempt to regulate financial services that ultimately harm the very consumers they claim to protect."

The council argues that these measures would push consumers towards high-cost alternatives by restricting access to credit from state-chartered banks. This could particularly impact rural and minority communities who rely on these lending options. Furthermore, it places state-chartered banks at a disadvantage compared to national banks operating under federal rules.

The AFC has already secured a preliminary injunction against Colorado’s DIDMCA opt-out law and is committed to challenging similar legislation across other states. Ashley Urisman, Director of State Government Affairs at AFC, emphasized their preparedness: “We are prepared to engage in every state where these harmful policies are introduced.”

As an organization representing fintech companies and innovative banks, the AFC aims to promote transparency and inclusion in financial services. Their mission includes supporting responsible innovation while maintaining consumer protections.