Fintechs Seek Review of Ruling on Colorado ‘Rent-a-Bank’ Law (1)

Financial technology trade groups want the full US Court of Appeals for the Tenth Circuit to weigh in on a Colorado law barring out-of-state banks from issuing loans that violate the state’s interest rate caps.

A split three-judge Tenth Circuit panel in November reversed a preliminary injunction blocking Colorado’s law, holding that the measure isn’t preempted by federal standards because it opts the state out of a federal framework allowing interest rate portability. The federal arrangement is intended to guarantee equal treatment of banks chartered by different states.

Colorado’s law would eliminate banks’ ability to compete on “equal footing” in ...