Banking and Consumer Credit Trade Associations Challenge Oregon’s DIDMCA Opt-Out Law

June 15, 2026 - 22:11

Three major financial services trade associations have filed a lawsuit against the state of Oregon, challenging a recently enacted law that opts the state out of a federal banking statute. The groups argue that the state law, which took effect in late 2024, unfairly targets lenders and disrupts the national banking system.

The lawsuit was brought by the National Association of Industrial Bankers, the Online Lenders Alliance, and the American Financial Services Association. They claim Oregon's law violates the Depository Institutions Deregulation and Monetary Control Act, a 1980 federal law that generally allows state-chartered banks to charge interest rates based on the laws of their home state, even when lending to customers in other states. Oregon's opt-out seeks to apply its own interest rate caps to loans made by out-of-state banks to Oregon residents.

The trade groups argue that this creates legal chaos for lenders who rely on a uniform national standard. They contend that Oregon's move undermines the stability of credit markets and could reduce access to loans for consumers in the state. The plaintiffs are asking a federal court to block the Oregon law, stating it is preempted by federal statute. The case highlights a growing trend of states attempting to regulate high-cost lending, which often puts them in direct conflict with federal banking rules and the interests of the lending industry.