The American Financial Services Association (AFSA) has voiced its dissatisfaction with a recent ruling by the 10th Circuit Court in Colorado. The court's decision involves the state's appeal concerning the federal Depository Institutions Deregulation and Monetary Control Act (DIDMCA). AFSA argues that this ruling could adversely affect consumer credit options and diminish the value of state bank charters, which are crucial to the dual banking system in the U.S.
AFSA contends that the decision contradicts DIDMCA's objectives and congressional intent by restricting credit options for consumers who may need them most. The organization also claims it disrupts the interstate dual banking system, allowing state-chartered financial institutions to compete equally with national banks.
According to AFSA, "Colorado should be able to oversee Colorado banks, but Colorado should not be able to tell a state-chartered bank properly overseen by regulators in Arizona, California, or Nevada under what terms it can serve consumers." The association supports Judge Rossman's dissenting opinion and is considering further actions.
AFSA highlights that Congress originally enacted DIDMCA to ensure parity between state-chartered and national banks. Founded in 1916, AFSA serves as a national trade association for the consumer credit industry, advocating for access to credit and consumer choice across the country. More information can be found here.
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