FDIC Withdraws Support for Colorado Interest Rate Import Cap (2)

The Federal Deposit Insurance Corp. no longer supports a Colorado law barring loans that violate the state’s interest rate cap and are issued by financial technology companies partnering with out-of-state banks.

The FDIC had filed an amicus brief in the case last April supporting Colorado’s HB 23-1229, a 2023 law opting the state out of interest rate portability provisions of the 1980 Depository Institutions Deregulation and Monetary Control Act.

Citing the change in administration and new leadership at the FDIC, the agency said in a Monday filing in the US Court of Appeals for the Tenth Circuit that it’s withdrawing ...