Colorado Interest Rate Import Cap Paused by Judge (Correct)

A federal judge temporarily stopped Colorado from blocking loans issued by financial technology companies in partnership with banks chartered in other states that violate Colorado’s interest rate limits.

Colorado’s HB23-1229, signed into law last year, opts the state out the 1980 Depository Institutions Deregulation and Monetary Control Act—effectively preventing out-of-state banks from issuing loans above Colorado’s interest rate caps, which can go as low as 15%.

The American Fintech Council, the American Financial Services Association, and the National Association of Industrial Bankers challenged Colorado’s law in March, arguing it violates the US Constitution’s supremacy and commerce clauses.

The industry challenge ...