State push to restrict responsible lending threatens consumer access to safe and responsible credit and harms local community banks

Washington, D.C. (February 18, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, continues to lead efforts to combat harmful legislation seeking to opt states out of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA), warning that such measures are legally questionable, will reduce access to responsible credit, and put state-chartered banks at a competitive disadvantage.

AFC remains committed to advocating for policies that promote financial inclusion and protect access to safe, transparent, and affordable lending. Recently, AFC CEO Phil Goldfeder travelled to Salem and testified before the Oregon House Committee on Commerce and Consumer Protection to oppose House Bill 2561, a proposal that would severely limit credit availability for consumers while undermining Oregon’s community banks.

“DIDMCA opt-out bills are a misguided attempt to regulate financial services that ultimately harm the very consumers they claim to protect,” said Phil Goldfeder, CEO of the American Fintech Council. “Legislation like Oregon’s HB 2561 and Colorado’s HB 23-1229 would restrict access to responsible credit, forcing consumers to turn to risky, high-cost alternatives. AFC will continue to challenge these efforts and advocate for policies that encourage responsible financial innovation while maintaining strong consumer protections.”

DIDMCA opt-out measures threaten to eliminate vital lending options that many families rely on, particularly in rural and minority communities, forcing them to turn to high-cost, non-bank alternatives. At the same time, DIDMCA opt-outs place state-chartered banks at a competitive disadvantage by restricting their ability to offer credit while national banks continue to operate under federal rules with fewer constraints.

Beyond the immediate economic impact, these laws also create legal uncertainty. AFC and its partners have already secured a preliminary injunction against Colorado’s DIDMCA opt-out law and remain committed to challenging similar legislation that overreaches state authority and disrupts the long-standing competitive balance between state-chartered and national banks.

“Oregon’s HB 2561 is the latest example of a troubling trend that threatens responsible financial innovation,” said Ashley Urisman, Director of State Government Affairs at AFC. “We are prepared to engage in every state where these harmful policies are introduced to ensure that consumers retain access to fair and transparent financial products.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote 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 finance and pioneer products to better serve underserved consumer segments and geographies.

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