Colorado DIDMCA Opt-Out Litigation: District Court Enjoins Colorado Attorney General and Administrator of Colorado Uniform Consumer Credit Code.

The U.S. District Court for the District of Colorado has granted a preliminary injunction against the Colorado Attorney General and Administrator of the Colorado Uniform Consumer Credit Code in a case brought by the National Association of Industrial Bankers, American Financial Services Association, and American Fintech Council. The case challenges Colorado's opt-out of Section 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) and its interpretation of Colo. Rev. Stat. § 5-13-106. The court found that Colorado is preliminarily enjoined from enforcing rate and fee limitations on loans made by the Trade Associations' members that are not made in Colorado and exceed the applicable interest rate in Section 1831d(a). The court also noted that the balance of harms and the public interest favor the Trade Associations. Colorado has thirty days to appeal the preliminary injunction. [Extracted from the article]