Tenth Circuit Lets Colorado Enforce Rate Caps on Loans to Residents by Out-of-State State Banks

Reversing a 2024 district-court injunction, the 2–1 ruling allows Colorado to apply its 36% APR ceiling to loans made to Coloradans by state‑chartered banks based elsewhere. The court read DIDMCA’s phrase “loans made in such State” to include transactions where the borrower or the lender is in the opt‑out state, and it remanded for further proceedings. Industry trade groups led by the National Association of Industrial Bankers said they are exploring appeals and warned of fragmented rules and reduced credit access, while consumer advocates praised the decision. National banks remain governed by the National Bank Act and are not subject to state opt‑outs, raising ongoing charter parity and compliance questions for multi‑state lenders. The decision has significant implications for bank‑fintech lending models and could encourage additional states to consider exercising DIDMCA opt‑out authority.