America's Credit Unions and several financial services organizations are urging a federal appeals court to protect the ability of state-chartered credit unions to export interest rates across state lines, warning that a recent court ruling could create significant operational challenges for lenders nationwide.
In an amicus brief filed Thursday with the U.S. Court of Appeals for the 10th Circuit, the groups weighed in on National Association of Industrial Bankers v. Weiser, a closely watched case stemming from Colorado's 2023 decision to opt out of portions of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). DIDMCA generally allows state-chartered financial institutions, including credit unions, to charge interest rates based on the laws of their home state.
The dispute centers on whether Colorado can apply its interest-rate caps to loans made by out-of-state state-chartered institutions to Colorado residents. A federal district court initially sided with industry groups, but a three-judge panel of the 10th Circuit reversed that decision in 2025, ruling that Colorado's opt-out applies when either the lender or borrower is located in the state.
In April, the full 10th Circuit agreed to rehear the case en banc, vacating the panel decision and reopening the matter.
America's Credit Unions argues that Congress intentionally omitted any reference to borrower location in DIDMCA and instead focused on where lending functions are performed. The brief contends that tying interest-rate authority to a borrower's location would force state-chartered institutions to navigate a patchwork of state laws, creating what it called an "administrative morass" for credit unions and other lenders.
The filing also emphasizes that DIDMCA was designed to create competitive parity between state-chartered institutions and national banks. Industry groups warn that allowing states to regulate loans based on borrower location could undermine interstate lending, reduce credit availability and increase compliance costs for state-chartered credit unions serving members across state lines.
America's Credit Unions is also backing the bipartisan American Lending Fairness Act, legislation that would clarify DIDMCA and preserve rate exportation rights for state-chartered financial institutions.
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