Congress should advance legislation protecting parity for state-chartered credit unions
The bipartisan American Lending Fairness Act (ALFA) would make a critical, narrow change to the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). America’s Credit Unions shared its support for the bill, signing onto a joint letter sent to Senate Banking Committee and House Financial Services Committee leadership Thursday that urged action on the legislation.
Introduced in both chambers, ALFA clarifies the appropriate, limited scope of DIDMCA’s opt-out provision and preserves DIDMCA’s intent of parity amongst all lending institutions.
America’s Credit Unions previously filed an amicus brief with the U.S. Court of Appeals for the 10th Circuit in June, noting DIDMCA text 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. The brief was filed in National Association of Industrial Bankers v. Wieser, which concerns the state of Colorado opting out of DIDMCA in 2023.