A recent decision by a panel of the Tenth Circuit Court has upheld Colorado’s opt-out from the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). The ruling, delivered by a two-to-one vote, is part of an ongoing legal dispute concerning state-level regulation of interest rates on loans made by out-of-state banks.
Phil Goldfeder, CEO of the American Fintech Council (AFC), responded to the court's decision. "Today’s ruling by a two-to-one panel of the Tenth Circuit is just another step in the long legal process and while we are disappointed, we are not deterred. This is a step backward for financial inclusion, economic opportunity, and the basic principle of legal consistency. If upheld by the full Tenth Circuit and the Supreme Court, it will only perpetuate a patchwork of state regulations that limits access to affordable, innovative credit products."
Goldfeder expressed concern about how this decision could affect consumers in Colorado. "This decision puts Colorado consumers—especially low- and moderate-income families—at risk of being cut off from safe, regulated financial services at a time when they need them most. It also puts Colorado’s local banks at a disadvantage, making it harder to attract responsible fintech providers and stifling innovative partnerships that help community banks remain competitive."
He stated that AFC would continue its efforts both in court and with lawmakers. "The American Fintech Council remains committed to advocating for clear, consistent national standards that protect consumers and enable responsible innovation. We will both continue to litigate this case and work with Congress to reaffirm its original intent under DIDMCA to prevent states from creating barriers that weaken consumer protections and restrict financial access."