Fintechs Sue to Block Colorado Law Barring Interest-Rate Imports

Financial technology companies and other lenders sued to overturn a Colorado law allowing the state to block loans from fintechs parterning with out-of-state banks that violate an interest-rate cap.

Colorado HB23-1229 violates the US Constitution’s Supremacy and Commerce clauses, the National Association of Industrial Bankers, the American Financial Services Association, and the American Fintech Council argued in a complaint filed Monday in the US District Court for the District of Colorado.

The Colorado law, enacted last year, exercised an opt-out clause in the 1980 Depository Institutions Deregulation and Monetary Control Act, effectively blocking the ability of banks chartered outside the ...