Regarding the 10th Circuit Ruling

AFSA is disappointed by yesterday’s 10th Circuit ruling in the state of Colorado’s appeal of a case involving the federal DIDMCA law, which will hinder consumers’ choices for credit products and devalue state bank charters that underpin the competitive and long-established dual banking system that has served consumers, businesses, and the American economy well for decades.

In undermining the purpose of DIDMCA and congressional intent, the panel majority would effectively strip credit options from consumers who can least afford it, while at the same time shredding the longstanding and well-functioning interstate dual banking system and the congressional authority to direct policies that placed state-chartered financial institutions on a level playing field with national banks. In short, Colorado should be able to oversee Colorado banks, but Colorado should not be able to tell a state-chartered bank properly overseen by regulators in Arizona, California, or Nevada under what terms it can serve consumers.

We believe the 10th Circuit majority got this one wrong. We agree with Judge Rossman’s dissent and are considering all options moving forward. Congress enacted DIDMCA to put state-chartered banks on par with national banks.