opt-out

Subscribe to opt-out via RSS

On September 16, 2026, the House Financial Services Committee (Committee) approved H.R. 7866, the American Lending Fairness Act of 2026, legislation introduced by Rep. Warren Davidson (R-Ohio) and Rep. Andy Barr (R-KY) that would address the effect of state opt-outs under Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) on interest-rate exportation by state-chartered banks and credit unions located outside an opt-out state and making loans to a resident of the opt-out state.… Continue Reading

Executive Summary

The Conference of State Bank Supervisors (CSBS), the nationwide organization representing state banking and financial regulators, has endorsed legislation that would clarify a critical issue concerning the scope of Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). The development comes as the House Financial Services Committee prepares to mark up H.R.… Continue Reading

Proposed legislation that would clarify the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) is important to the health of the dual banking system, Kathleen Kraninger, President and CEO of the Florida Bankers Association, told the House Financial Services Committee at a hearing held on September 2, 2026 entitled “Strengthening the American Economy: Promoting Growth, Opportunity, and Prosperity.”… Continue Reading

Hearing will focus on whether Section 525 permits an opt-out state to regulate loans made by out-of-state state banks

On Wednesday, September 2, the House Financial Services Committee will hold a hearing entitled “Strengthening the American Economy: Promoting Growth, Opportunity, and Prosperity.” The hearing will begin at 10:00 a.m. ET in Room 2128 of the Rayburn House Office Building.… Continue Reading

A state senator in New York introduced a bill that, if adopted, would exercise New York’s right under Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”) to opt-out of DIDMCA preemption. However, there is virtually no chance that this bill will be enacted this year.… Continue Reading

Yesterday, the State of Utah, joined by the attorneys general of Alabama, Arkansas, Florida, Georgia, Iowa, Louisiana, Mississippi, Montana, Nebraska, Oklahoma, South Carolina, South Dakota, Texas, and West Virginia, filed an amicus brief in support of the plaintiffs’ motion for a preliminary injunction in the pending challenge to Oregon House Bill 4116.… Continue Reading

The Office of the Comptroller of the Currency (“OCC”) filed an amicus curiae brief on July 28, 2026, in National Association of Industrial Bankers, et al. v. Sean O’Day, pending in the U.S. District Court for the District of Oregon. While the OCC takes no position on preliminary injunctive relief, it strongly defends the federal interest-rate exportation framework under the National Bank Act and the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”), and rejects Oregon’s interpretation of Section 525’s opt-out provision.… Continue Reading

A significant amicus brief was filed yesterday by many bank industry trade associations in the U.S. District Court for the District of Oregon in National Association of Industrial Bankers v. O’Day. This case challenges Oregon House Bill 4116’s attempt to utilize the state’s opt-out from Sections 521 through 523 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”) as a basis to regulate interest rates charged by out-of-state state banks.… Continue Reading

The Federal Deposit Insurance Corporation (“FDIC”) filed an amicus brief supporting the motion for a preliminary injunction filed by the National Association of Industrial Bankers (“NAIB”), the Online Lenders Alliance (“OLA”), and the American Financial Services Association (“AFSA”) in their challenge to Oregon’s recently enacted opt-out law. The FDIC explains that it has a substantial institutional interest in the case because it administers and enforces the Federal Deposit Insurance Act, including Sections 521 and 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”), the statutory provisions at the center of the litigation.… Continue Reading

As we have previously reported, the en banc Tenth Circuit is considering National Association of Industrial Bankers v. Weiser, the closely watched case involving Colorado’s effort to use Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”) to apply its interest-rate caps to loans made by out-of-state, state-chartered banks to Colorado borrowers.… Continue Reading