Banks ask en banc 10th Circuit to lift Colorado’s interest rate caps

The full 10th Circuit heard arguments over whether Colorado can cap interest rates state-chartered banks charge Colorado borrowers, a question that turns entirely on whether a loan is legally 'made' where the borrower signs or where the bank is headquartered. Banking groups argue the 1980 federal deregulation law was about protecting bank federalism, not consumers, and that Colorado's 2024 opt-out law does nothing if lenders can simply claim the loan happened wherever their offices sit.

A district judge appointed by Trump sided with the banks; a panel with Biden and Obama appointees reversed in Colorado's favor, with one judge dissenting on the grounds that a loan can't logically be made in two places at once. The court gave no indication of timing on a decision that will determine whether the opt-out provision means anything at all.

The full dispatch is available from the source below.