NAIB Statement on Tenth Circuit Ruling in NAIB v. Weiser
The National Association of Industrial Bankers (NAIB) today expressed deep concern over the Tenth Circuit’s decision upholding Colorado’s effort to extend its interest-rate laws to out-of-state, federally insured banks. The ruling departs from Congress’s intent to preserve a uniform national lending framework and threatens to fragment the country’s financial and credit markets. If replicated by other states, the decision could discourage interstate lending, increase compliance costs, and reduce credit access for families and small businesses nationwide.
“The Tenth Circuit’s ruling opens the door to a confusing patchwork of state laws that will make credit costlier and less available across the country,” stated NAIB Executive Director Frank Pignanelli. “As Judge Rossman warned in her dissent, allowing states to reach across their borders undermines the uniform national standards Congress created and puts small lenders and consumers at risk. NAIB is exploring every legal option in response to this disappointing ruling. And we will continue to advocate for consistent, nationwide lending rules that protect consumers, promote innovation, and sustain the stability of America’s dual banking system, which relies on state charter banking.”
Background on the Case
In National Association of Industrial Bankers v. Weiser, the Tenth Circuit considered Colorado’s attempt to “opt out” of the federal Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) provision that allows state-chartered, FDIC-insured banks to apply their home state’s interest-rate limits when lending across state lines. The court ruled that Colorado’s opt-out could extend to loans made by out-of-state banks to Colorado borrowers, significantly broadening state regulatory reach.
Judge Veronica Rossman, in dissent, warned that this interpretation undermines the uniformity Congress intended and threatens to create a maze of overlapping state rules. The decision increases legal uncertainty for banks and fintech platforms that lend nationally, raising costs and potentially restricting access to affordable credit for consumers and small businesses alike.