The AFSA SGA team published their June white paper examining the Depository Institution Deregulation and Monetary Control Act (DIDMCA).
The paper examines recent opt-out efforts and the potential complications that would arise from states opting out of interest rate exportation, which could impact the banking industry.
It also explains why opting out may not achieve the goals of those pushing for changes.
Enacted in 1980, the DIDMCA preempts state usury laws by allowing FDIC-insured state-chartered banks to contract for the interest rate permitted by the state in which the bank is located and export that interest rate into other states.
Congress passed DIDMCA a little over one year following the Supreme Court’s decision in Marquette v. First of Omaha Service Corp., which established that the National Bank Act allows national banks to export interest rates across state lines, with the intent of leveling the playing field between state and national banks.
To assuage states-rights concerns, DIDMCA allows states to opt out of the interest rate exportation, and seven states initially opted out following its passage. Since then, six of those states opted back in and only Iowa remains opted out. With a recent focus on bank partnership lending, consumer activists and some policymakers have renewed the push for states to opt out of DIDMCA.
This paper, along with SGA’s other white papers, can be found on the SGA resources section of AFSA’s website.
The AFSA SGA team published their June white paper examining the Depository Institution Deregulation and Monetary Control Act (DIDMCA).
The paper examines recent opt-out efforts and the potential complications that would arise from … Read the rest
PayNearMe Secures $45M in Series D Funding, Accelerating Payments Innovation and Market Expansion
Queensland Investment Corporation leads investment round, empowering PayNearMe to pioneer new advancements in digital payments and … Read the rest
The AFSA Extra Credit Podcast Industry Icon series continues, featuring outstanding female leaders in the consumer credit industry. This episode features Rochelle McClanahan, Chief Financial Officer/Compliance Officer with Brundage… Read the rest
Inflation is a complex phenomenon influenced by various factors, but its consequences cannot be under-estimated. In such an environment, access to credit becomes increasingly crucial for individuals and businesses. While the cost of … Read the rest
The American Financial Services Association and its members have long supported our nation’s military veterans, current servicemembers, and their families. It seems that with every passing year, the intent of Memorial Day becomes less… Read the rest
In this episode of the AFSA Extra Credit Podcast, Dan chats with Stephen McDaniel, Co-founder & CEO with F&I Sentinel and Rick Hackett, Board Member with F&I Sentinel and former Assistant Director at the Consumer Financial Protection… Read the rest
AFSA has been fortunate to host its conferences in outstanding destinations across the country. And the 2023 Annual Meeting will be no different. In fact, you might say we’re taking this meeting to entirely new heights. Not just because of … Read the rest
The American Financial Services Association is pleased to announce that Clint Pulver, one of the most sought-after leadership experts on employee retention, will be the Keynote Speaker at the 2023 AFSA Annual Meeting from October. Clint… Read the rest
The AFSA Extra Credit Podcast Industry Icon series continues, featuring outstanding female leaders in the consumer credit industry. This episode features Lisa Verdun, Senior Fraud Consultant with Point Predictive. She chats with Danielle… Read the rest
