Oregon Enacts DIDMCA Opt-Out to Enforce Rate Cap on Consumer Loans

The Governor of Oregon has signed H.B. 4116, declaring that the State does not want the amendments in section 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) to apply to consumer finance loans made in Oregon.  The bill amends Oregon law in a way that appears calculated to characterize consumer loans made to consumers who reside or maintain a domicile in Oregon, or the payment on a consumer loan is drawn in Oregon, as having been “made in” Oregon.  The Oregon law is similar to a Colorado DIDMCA opt-out law that was challenged in a case currently pending rehearing en banc in the U.S. Court of Appeals for the Tenth Circuit, as previously reported by WBK.

The Oregon Division of Financial Regulation provided written materials to the Oregon State Legislature explaining its position that opting out of DIDMCA would create a bright-line rule that certain activities between fintech licensees and out-of-state, state-chartered banks (which the regulator characterized as “a rent-a-bank arrangement”) are illegal.

The law becomes effective June 5, 2026.