On November 9, 2026, Oregon Attorney General Dan Rayfield led a coalition of 18 attorneys general urging the U.S. House of Representatives to reject H.R. 7866. In a letter to congressional leaders, the attorneys general argued that the bill would eliminate states’ ability to opt out of interest-rate preemption under the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA).
DIDMCA generally allows state-chartered banks to charge borrowers in other states interest rates permitted by the laws of the banks’ home states. Congress also gave states the option to preserve their own interest-rate limits for certain loans made to their residents. The attorneys general say that option has become increasingly important as online lenders partner with out-of-state banks to offer loans at rates that may exceed state limits. Specifically, the letter contends that H.R. 7866 would:
- Eliminate states’ opt-out authority. States would lose the ability to apply their interest-rate limits to loans made by out-of-state state-chartered banks under DIDMCA.
- Affect bank-lender partnerships. The attorneys general argue that removing the opt-out could allow lenders working with out-of-state banks to offer loans at rates above the limits that would otherwise apply under state law.
- Limit state consumer-protection authority. The letter argues that the bill would curtail states’ traditional role in regulating lending and protecting residents from high-cost loans.
Putting It Into Practice: Oregon and Colorado have recently exercised DIDMCA’s opt-out provision (previously discussed here and here). The letter adds to ongoing debate over how federal rate-exportation rules interact with state interest-rate caps and bank-lender partnerships. If enacted, H.R. 7866 could affect state efforts to apply local lending limits to loans made through out-of-state banks. Banks, fintech companies, and other participants in lending partnerships should monitor the bill’s progress and assess how potential changes could affect their lending models and compliance obligations.