WASHINGTON — The Defense Credit Union Council and America’s Credit Unions have joined nine other national financial services trade associations in urging Congress to pass bipartisan legislation they said would clarify federal lending law and preserve consistent rules for financial institutions operating across state lines.
According to the organizations, the American Lending Fairness Act of 2026, introduced as S. 3889 by Sen. Bernie Moreno (R=OH) and H.R. 7866 by Rep. Warren Davidson (R-OH) would make what they described as a narrow clarification to the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA).
In a joint letter to the leaders of the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Committee, the coalition said the bill would clarify the scope of DIDMCA’s state opt-out provision, preserve parity between federally and state-chartered depository institutions and provide greater legal certainty for financial institutions serving customers across state lines.
Anthony Hernandez, president and CEO of the Defense Credit Union Council, said military families frequently relocate because of permanent change-of-station orders, deployments and other assignments, making consistent access to financial services particularly important.
‘Consistent Access’
“The American Lending Fairness Act would help preserve consistent access to responsible financial services while maintaining the balance and stability of our nation’s dual banking system,” Hernandez said in a statement.
The trade groups said Congress enacted DIDMCA to allow state-chartered financial institutions to compete on equal footing with federally chartered institutions while permitting states to opt out of certain provisions for institutions chartered within their own borders and loans made there.
The coalition argued that recent efforts by some states to apply those opt-out laws to institutions chartered elsewhere exceed Congress’ original intent. The letter cited litigation in Colorado and Oregon and warned that conflicting court decisions could create a patchwork of state lending requirements.
Jason Stverak, DCUC’s chief advocacy officer, said the legislation would clarify existing law rather than overhaul the nation’s lending framework.
Potential for Increased Litigation
Without congressional action, Stverak said, credit unions, banks and other lenders could face increased litigation, regulatory uncertainty and inconsistent requirements from state to state.
The letter was addressed to Senate Banking Committee Chairman Tim Scott, R-S.C., Ranking Member Elizabeth Warren, D-Mass., House Financial Services Committee Chairman French Hill, R-Ark., and Ranking Member Maxine Waters, D-Calif.
In addition to DCUC and America’s Credit Unions, the letter was signed by the American Bankers Association, American Financial Services Association, American Fintech Council, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Financial Technology Association, National Association of Industrial Bankers and Online Lenders Alliance.
