On April 7, Oregon Governor Tina Kotek signed House Bill 4116 into law, completing Oregon’s opt-out of Section 521 of DIDMCA for certain consumer finance loans in the state. The bill (previously discussed here) amends the Oregon Consumer Finance Act and provides that DIDMCA’s interest-rate exportation framework does not apply to covered consumer finance loans made in Oregon.
Putting It Into Practice: Oregon’s enactment continues the recent trend of states testing the scope of DIDMCA opt-out authority. The practical significance of Oregon’s new law remains tied to the unresolved litigation over Colorado’s opt-out statute (previously discussed here). The Tenth Circuit has granted en banc rehearing and vacated the panel decision, removing its precedential force while the full court reconsiders the issue. State-chartered banks, fintech partners, and other consumer lenders should continue monitoring the Colorado case and related state activity as they assess multistate lending programs.
