Colorado’s Actions Limit Interstate Banking Under DIDMCA - Plaintiffs Reiterate Strong Concerns, Consequences for Consumers
Today, the state of Colorado filed a response in the 10th Circuit Court of Appeals as part of ongoing litigation regarding its attempt to regulate certain out-of-state banks by opting out of the uniform federal interstate banking framework under the Depository Institutions Deregulation and Monetary Control Act (DIDMCA).
As the plaintiffs in this case, the National Association of Industrial Bankers, American Financial Services Association, and American Fintech Council reiterate our strong objection and deep concern that Colorado’s misinterpretation and misapplication of its limited opt-out rights not only contravene federal law, they would have serious and damaging consequences for consumers nationwide, and would put the time-tested state-federal dual banking system at risk.
“Colorado’s attempted overreach threatens to raise costs, reduce access to credit, and make the system less fair for everyday Americans. That’s why this matters not just to state banks and credit unions, but to our customers across the country,” said Frank Pignanelli, Executive Director of the National Association of Industrial Bankers (NAIB).