The American Financial Services Association (AFSA) has expressed disappointment over a recent decision by the 10th Circuit Court in Colorado. The ruling concerns the state's appeal related to the federal Depository Institutions Deregulation and Monetary Control Act (DIDMCA). AFSA believes this decision will negatively impact consumer credit options and devalue state bank charters, which are integral to the dual banking system in the United States.
AFSA argues that the ruling undermines DIDMCA's purpose and congressional intent by limiting credit options for consumers who may need them most. The organization also claims it disrupts the interstate dual banking system, which allows state-chartered financial institutions to operate on equal footing with national banks. According to AFSA, "Colorado should be able to oversee Colorado banks, but Colorado should not be able to tell a state-chartered bank properly overseen by regulators in Arizona, California, or Nevada under what terms it can serve consumers."
The association agrees with Judge Rossman's dissenting opinion and is considering further actions. AFSA emphasizes that Congress originally enacted DIDMCA to ensure parity between state-chartered and national banks.
Founded in 1916, AFSA serves as a national trade association for the consumer credit industry, advocating for access to credit and consumer choice across the country.
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