The purpose of this blog is to respond to questions we have received as to why a state like Colorado would ever use Section 525 of DIDMCA to opt out of Section 521 of DIDMCA if it would not preclude rate exportation by out-of-state, state-chartered banks. The question suggests that Congress would not have enacted Section 525 for any purpose other than to prevent rate exportation.… Continue Reading
Section 525
Consumer Advocacy Group Urges Tenth Circuit to Allow Colorado to Regulate Interest Rates Charged by Out-of-State State Banks
By Alan S. Kaplinsky & Burt M. Rublin on
Posted in Litigation and Court Decisions
As we have previously reported, the en banc Tenth Circuit granting rehearing in National Association of Industrial Bankers v. Weiser, the closely watched case involving Colorado’s attempt to use Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”) to prevent out-of-state state-chartered banks from exporting their home-state interest rates to Colorado borrowers.… Continue Reading
Consumer Groups Urge Tenth Circuit to Adopt Colorado’s Interpretation of Section 525 of DIDMCA
By Alan S. Kaplinsky & Burt M. Rublin on
Posted in Litigation and Court Decisions
Another amicus brief has been filed in the Tenth Circuit’s en banc consideration of NAIB v. Weiser, this time by two prominent consumer advocacy organizations: the Center for Responsible Lending (CRL) and the National Consumer Law Center (NCLC). The brief supports the Colorado Attorney General’s interpretation of Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA), arguing that when a state opts out of Section 521, it may apply its usury laws to loans made by out-of-state state-chartered banks to borrowers residing in the opt-out state.… Continue Reading
Today’s podcast episode: DIDMCA Opt-Outs Resurface: Oregon Legislation and the Colorado Case Could Alter the Landscape for Interstate Lending by State Banks
By Ballard CFS Group on
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).… Continue Reading