DIDMCA Opt-Outs Resurface: Oregon Legislation and the Colorado Case Could Alter the Landscape for Interstate Lending by State Banks

About this episode

The episode discusses the implications of renewed state opt-out authority under DIDMCA and its impact on interstate lending.

In this episode of the Consumer Finance Monitor Podcast, host Alan Kaplinsky is joined by colleagues Pilar French and Burt Rublin to unpack a rapidly evolving issue at the intersection of bank–FinTech partnerships and interstate lending: the renewed exercise of state opt-out authority under Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). Colorado enacted an opt-out statute in 2023 that is the subject of ongoing litigation before the entire Tenth Circuit Court of Appeals, and very recently the Oregon Legislature passed an opt-out bill as well. The Podcast discussion highlights how a little-used statutory provision is now at the center of a major legal and policy debate—one that could reshape the landscape for state-chartered banks and the broader consumer finance industry. The Foundation: Interest Rate Exportation Under DIDMCA For decades, state-chartered, FDIC-insured banks have relied on Section 27 of the Federal Deposit Insurance Act—enacted through DIDMCA—to "export" interest rates permitted in their home states to borrowers nationwide. This authority mirrors the power granted to national banks under the National Bank Act and…

People in this episode

Host: Alan Kaplinsky

Guests: Pilar French, Burt Rublin

Topics covered

• DIDMCA
• interstate lending
• state banks
• FinTech partnerships
• Oregon legislation
• Colorado case

Keywords

• banking
• consumer finance
• legal debate
• interest rates

Mentioned in this episode

Places: Oregon, Colorado

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