Amicus brief supports state-chartered credit unions in DIDMCA challenge

Working to protect export rights of state-chartered credit unions, America’s Credit Unions and other organizations filed an amicus brief with the U.S. Court of Appeals for the 10th Circuit Thursday. The lawsuit, National Association of Industrial Bankers v. Wieser, concerns the state of Colorado opting out of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA) in 2023.

DIDMCA allows state-chartered financial institutions, including credit unions, to charge interest rates based on their home state, but allows states to opt out of federal laws for loans made in that state. By opting out, Colorado seeks to enforce its own interest-rate caps for loans involving Colorado residents. Financial organizations sued, claiming the opt-out should only apply to institutions physically located in Colorado.

In 2024, a district court ruled in favor of financial institutions, but the 10th Circuit Court of Appeals overturned that decision in 2025. In April, the court of appeals granted an “en banc” rehearing before a panel of judges and will re-decide the case.

In Thursday’s brief, America’s Credit Unions and other organizations noted the text of DIDMCA specifically omits any mention of a borrower’s location, as Congress intended that a loan is only “made” in the state where lending functions are performed.

In addition, the brief highlights “the legislative history of DIDMCA demonstrates that the entire Congressional focus was on creating a level playing field for state-chartered depository institutions and the national banks against which they competed in their home state.”

It adds that the court holding that a loan is made in the state where the borrower resides will “create an administrative morass” for state-chartered depository institutions, as they would be required to develop a variety of interest rates for borrowers from opt-out states who travel to non-opt-out states, or to borrowers from non-opt-out states who travel to opt-out states and use their credit cards or obtain online loans when they travel.

“These are but a few examples of the administrative quagmire that would be created by a statutory interpretation that would apply the usury law of any opt-out state where the borrower happens to be located at the time the loan is made by the lender,” the brief reads.

America’s Credit Unions supports a bill introduced in the House and Senate to clarify DIDMCA to address the Colorado law, the American Lending Fairness Act.