Bonta Leads 18 Attorneys General Urging Congress to Keep States' Power to Limit Interest Rates
California Attorney General Rob Bonta announced on November 10 that he joined a coalition of 18 attorneys general in a letter to Congress opposing H.R. 7866, a U.S. House bill that would eliminate states' ability to opt out of the interest-rate preemption provisions of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA).
Under Section 521 of DIDMCA, state-chartered banks can charge the interest rate allowed by their home state regardless of where a borrower lives, while Section 525 gives states an opt-out right to apply their own usury caps to loans made in their state. The attorneys general argue that nonbank lenders have exploited preemption through partnerships with state banks, citing a Colorado case in 2023 in which one operator made thousands of loans at annual rates above 100 percent.
Bonta said states play a crucial role in consumer financial protection, that California law protects consumers from predatory lending, and that amid an affordability crisis Congress should reject H.R. 7866 rather than slash states' rights to protect consumers.
(Source: California Attorney General's Office)
Source: California Attorney General's Office
Published by GSM · USA (original Chinese edition)
Photo: 图：加州总检察长办公室大楼外观，位于 Sacramento 1300 I Street。CC BY-SA 3.0，经加州素材包。 / Photo: The California Attorney General's office building in Sacramento. CC BY-SA 3.0, via the California asset pack.
