On January 21, representatives from Colorado filed a response in the U.S. Court of Appeals for the 10th Circuit opposing a petition for rehearing en banc in a case involving the state’s opt-out from federal interest rate preemption under DIDMCA, effective July 1, 2024. The state argued that the panel’s earlier decision was correct in holding that the Colorado law applies to loans in which either the lender or the borrower is located in the state. The panel had previously reversed a district court injunction that limited enforcement of Colorado rate caps only to loans made by lenders located within Colorado.

In its filing, the state argued that en banc review was not warranted as: (i) there was no circuit court split because the 8th Circuit’s precedent referenced by the plaintiffs concerned a different statute; (ii) the panel followed U.S. Supreme Court guidance in interpreting the statute’s plain language; and (iii) the dispute was a straightforward question of statutory interpretation rather than a question of “exceptional public importance.” The response also addressed recent amicus briefs filed by the FDIC and the OCC (covered by InfoBytes here), stating that concerns about operational challenges and future policy impacts are speculative and should be directed to Congress.