We previously reported that, on July 18, the Colorado Attorney General and UCCC Administrator appealed to the 10th Circuit Court of Appeals challenging Judge Domenico’s order dated June 18 D. (Colo.) granting a preliminary injunction to the plaintiffs – trade groups precluding the defendants from enforcing Colorado’s opt-out statute (which became effective on July 1) and usury laws as to out-of-state, state banks making loans outside Colorado to Colorado residents.… Continue Reading
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Plaintiffs file amended complaint in Colorado opt-out litigation
Here is an update on the lawsuit filed by three trade associations against the Colorado Attorney General and UCCC Administrator challenging the application of the Colorado opt-out statute to out-of-state, state chartered, FDIC-insured banks.
On June 18, 2024, Judge Domenico from the U.S. District Court for Colorado issued a preliminary injunction enjoining the Colorado Attorney General and UCCC Administrator from enforcing the Colorado statute opting out of Section 521 of DIDMCA against members of the plaintiff trade associations who make loans from outside Colorado to Colorado residents.… Continue Reading
Colorado provides some (but not enough) guidance on new general-purpose credit card carve-out
In the same 2023 bill (House Bill 23-1229) that included Colorado’s DIDMCA opt-out**, Colorado adopted a statute excepting certain “general-purpose credit cards”, as defined, from the state’s limitations on finance charges and fees applicable to consumer transactions, effective July 1, 2024. However, ambiguities in the definition of “general-purpose credit card” have perplexed many in the industry.… Continue Reading
Colorado UCCC Administrator issues interpretive opinion letter regarding Colorado opt-out law
On April 22, 2024 (almost 2 months before Judge Daniel Domenico issued a preliminary injunction against the UCCC Administrator and Colorado Attorney General), Administrator Martha Fulford issued an Interpretive Opinion Letter regarding the Colorado opt-out law (to be codified on its effective date of July 1, 2024 as C.R.S. Section 5-13-106) (the “Colorado Opt-out Law”).… Continue Reading
Colorado federal court issues preliminary injunction prohibiting Colorado from enforcing DIDMCA opt-out to loans made to Colorado residents by out-of-state state-chartered banks
The Colorado federal district court hearing NAIB, et al v. Weiser, et al., the lawsuit filed by three consumer financial services industry trade groups challenging Colorado’s opt-out legislation, has granted the plaintiffs’ motion for preliminary injunction. As interpreted by the defendant State officials, Colo. Rev. Stat. § 5-13-106 (Opt-out Law), ), which is due to take effect on July 1, purports to apply Colorado’s interest rate and fee limits to interstate loans made by federally insured out-of-state state-chartered banks to Colorado borrowers. … Continue Reading
Colorado rate exportation litigation: Motion to dismiss complaint claims there is no claim there
Last month, just a few days before the preliminary injunction hearing, Colorado’s attorney general filed a Motion to Dismiss the Complaint filed in federal district court in Colorado by three financial services industry trade groups challenging Colorado’s statute purporting to opt out (slated to take effect July 1, 2024) of a federal law that permits FDIC-insured state-chartered banks to “export” interest rates on interstate loans. … Continue Reading
Ballard Spahr submits amicus brief on behalf of banking trade groups in Colorado rate exportation litigation
On behalf of the American Bankers Association (ABA) and the Consumer Bankers Association (CBA), Ballard Spahr has submitted an amicus brief in NAIB et al. v. Weiser et al., the lawsuit challenging Colorado’s opt-out legislation The amicus brief was filed in support of the plaintiffs’ motion for preliminary injunction.
The law at issue is the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). … Continue Reading
Colorado passes AI regulation
Colorado has become the first state to pass legislation (SB24-205) regulating the use of artificial intelligence (AI) within the United States. This legislation is designed to address the influence and implications, ethically, legally, and socially, of AI technology across various sectors.
Any person doing business in Colorado, including developers or deployers of high-risk AI systems that are intended to interact with consumers. … Continue Reading
Plaintiffs file reply in support of motion for preliminary injunction in Colorado rate exportation litigation
The industry group plaintiffs in NAIB et al. v. Weiser et al., the lawsuit challenging Colorado’s opt-out legislation, have filed their reply to the brief filed by the Colorado Attorney General and Colorado Uniform Consumer Credit Code Administrator in opposition to the plaintiffs’ motion for preliminary injunction. In their reply, the plaintiffs also respond to the amicus brief filed by the FDIC supporting Colorado’s position.… Continue Reading
Further developments in Colorado rate exportation litigation: Colorado AG files opposition brief and FDIC tries to “opt out” of its own interpretations of DIDMCA Section 525
As expected, the Colorado Attorney General and Colorado Uniform Consumer Credit Code Administrator filed their responsive brief in opposition to the plaintiffs’ motion for preliminary injunction filed earlier this month in federal district court in Colorado. As explained in our earlier blog, in NAIB et al. v. Weiser et al.,… Continue Reading