Federal: AFC Letter in Support of the American Lending Fairness Act

The Honorable Tim Scott
Chairman
Committee on Banking, Housing, and Urban Affairs
United States Senate
Washington, DC 20510

The Honorable Elizabeth Warren
Ranking Member
Committee on Banking, Housing, and Urban Affairs
United States Senate
Washington, DC 20510

The Honorable French Hill
Chairman
Committee on Financial Services
United States House of Representatives
Washington, DC 20515

The Honorable Maxine Waters
Ranking Member
Committee on Financial Services
United States House of Representatives
Washington, DC 20515

Re: Letter in Support of the American Lending Fairness Act of 2026

Dear Chairmen Scott and Hill, and Ranking Members Warren and Waters:

On behalf of the American Fintech Council (AFC),  I write to express our strong support for the American Lending Fairness Act of 2026. AFC applauds Senator Moreno and Representative Davidson for their introduction of this critical legislation aimed at preserving parity between state-chartered community banks and their nationally-chartered counterparts. We also applaud the Senate Banking and House Financial Services Committees for their continued focus on strengthening the community banking system and advancing pragmatic legislative agendas that promote competition, responsible innovation, and a resilient U.S. financial services ecosystem.

A standards-based organization, the American Fintech Council is the largest and most diverse trade association representing financial technology companies and innovative banks. On behalf of more than 150 member companies and partners, AFC promotes a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer and small business finance and pioneer products and services designed to better serve underserved consumers, small businesses, and local communities across the United States.

Congress enacted the Depository Institutions and Deregulation and Monetary Control Act of 1980 (DIDMCA) to level the playing field between state-chartered and national banks which has served as the legal foundation for interstate  lending by state-chartered institutions – allowing those banks and credit unions to maintain parity with national banks and serve customers across state lines under a single, uniform federal framework. It is the legal infrastructure that makes a national credit market possible. Recently, select states have attempted to opt out of Section 521 of DIDMCA, ending parity for state-chartered banks with their nationally-chartered counterparts.  Unfortunately, the misguided state legislation sweep in responsible lenders who offer consumers safe, responsible, and affordable credit products.

More importantly, these opt-outs upset the competitive balance in the financial services industry and put state-chartered banks at a significant disadvantage as compared with their nationally-chartered counterparts. As AFC has raised numerous times, opting out of DIDMCA harms American consumers and families facing an affordability crisis by eliminating the availability of responsible credit options offered by state-chartered banks.  These opt-out laws will lead to shrinking credit availability and rising rates due to a lack of competition in the market..

Federal banking regulators have similarly warned that opting out of DIDMCA threatens the integrity of the dual banking system and reduces access to credit. After the State of Colorado enacted its opt-out (H.B. 23-1229)   and the law was challenged in federal court, the case proceeded through a preliminary injunction in district court and then reversal by a divided panel on appeal, prompting a petition for rehearing en banc. In its amicus brief supporting rehearing en banc, the Office of the Comptroller of the Currency emphasized that the panel’s interpretation fundamentally alters DIDMCA’s federal interest-rate parity framework for state-chartered banks, creates significant operational challenges for interstate lending, and advantages national banks over state banks in a manner inconsistent with Congress’s competitive-equity goals.  

Additionally, the Federal Deposit Insurance Corporation likewise urged rehearing en banc, arguing that the panel decision disrupts the interest rate parity approach established by Congress and may encourage additional state opt-outs that could swallow the general rule of parity, burdening state-chartered institutions and reducing nationwide credit availability.

The American Lending Fairness Act of 2026 reaffirms Congress’s original intent and protects the dual banking system by clarifying the proper scope of DIDMCA’s opt-out provision and reaffirming that one state should not be able to dictate the permissible rate terms for loans made by banks chartered and supervised in another state. This targeted clarification will restore the intended balance between federal and state authority, preserve competitive equity within the dual banking system, and support responsible interstate lending that expands access to transparent, affordable credit.

AFC applauds Senator Moreno and Representative Davidson for their leadership on this issue and stands ready to serve as a resource to the Committees as they advance policies that preserve DIDMCA’s intended parity framework, strengthen the dual banking system, and ensure that consumers and small businesses, including in underserved communities, continue to have access to safe, transparent, and affordable options.

Sincerely,

Ian P. Moloney
Chief Policy Officer
American Fintech Council

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CC:
The Honorable Bernie Moreno, United States Senate
The Honorable Warren Davidson, United States House of Representatives

[1] AFC’s membership spans technology platforms, non-bank lenders, banks, payments providers, loan servicers, credit bureaus, and personal financial management companies.
[2] Colorado General Assembly. (2023). HB23-1229: Amending terms consumer lending laws. Available at https://leg.colorado.gov/bills/hb23-1229  
[3] American Fintech Council. (April 10, 2023). CO: Advocacy letter to Colorado Legislature in opposition to Colorado House Bill 1229. Available at https://fintechcouncil.org/advocacy/afc-letter-opposing-colorado-house-bill-1229-which-will-severely-limit-access-to-safe-transparent-and-reliable-credit-for-co-consumers and American Fintech Council. (May 20, 2025). RI: Testimony in opposition of Senate Bill 386. Available at https://fintechcouncil.org/advocacy/ri-testimony-in-oppostion-of-senate-bill-386
[4] Ibid [Colorado Law]
[5] Office of the Comptroller of the Currency. (Dec. 16, 2025). “Brief of amicus curiae Office of the Comptroller of the Currency in support of plaintiffs-appellees’ petition for rehearing en banc” (National Association of Industrial Bankers v. Weiser, No. 24-1293).
[6] Federal Deposit Insurance Corporation. (Dec. 16, 2025). “Brief of Federal Deposit Insurance Corporation as amicus curiae in support of the petition for rehearing en banc” (National Association of Industrial Bankers v. Weiser, No. 24-1293) (10th Cir.).

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