Overview
- On November 10, a 2-1 panel reversed a June 2024 preliminary injunction that had blocked Colorado’s DIDMCA opt-out.
- The court held Colorado may apply its usury and fee limits to consumer loans to borrowers in the state regardless of where the state‑chartered lender is located.
- The decision delivers the first federal appellate interpretation of DIDMCA’s opt-out and remands the case for further proceedings.
- The ruling will not take effect until the Tenth Circuit issues its mandate, and industry groups are expected to seek en banc or Supreme Court review that could delay implementation.
- Colorado’s opt-out reaches interest and compensating fees on consumer credit, excludes national banks and business-purpose loans, and could disrupt rate exportation and bank–fintech partnership models.