Banks seek en banc 10th Circuit reversal of Colorado’s loan interest caps
A coalition of banking groups asked the full 10th Circuit Court to overturn Colorado’s recent law limiting interest rates on state-chartered banks.
In Denver, banking industry lawyers urged the en banc 10th Circuit to reverse a panel ruling that upheld Colorado’s 2024 Uniform Consumer Credit Code, which caps interest rates for state-chartered banks. Attorney David Gossett maintained that the Depository Institutions Deregulation and Monetary Control Act was designed to protect federal banking authority, meaning a loan is “made” where the bank resides, not where the borrower signs.
The banks argue that Colorado’s opt-out provision cannot revive pre-DIDMCA state usury powers. The case follows a 2025 preliminary injunction by Judge Daniel Domenico and a subsequent appellate split, with Judges Richard Federico and Gregory Phillips supporting the banks and Judge Veronica Rossman dissenting. Judges Harris Hartz, Jerome Holmes and others questioned the practical effect of the state’s approach, while the court left the timing of a decision open.
Why it matters
The ruling will determine whether states can limit interest rates on loans from out-of-state banks.
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