DCUC Joins Broad Financial Services Coalition in Support of American Lending Fairness Act

Bipartisan legislation would clarify DIDMCA’s state opt-out provision, preserve charter parity and prevent a fragmented state-by-state lending system.

WASHINGTON, DC – The Defense Credit Union Council (DCUC) today joined 10 national financial services trade associations in urging congressional leaders to support the bipartisan American Lending Fairness Act of 2026, introduced as S. 3889 by Sen. Bernie Moreno (R-Ohio) and H.R. 7866 by Rep. Warren Davidson (R-Ohio).

In a joint letter to the leaders of the Senate Banking, Housing, and Urban Affairs Committee and the House Financial Services Committee, the coalition emphasized that the legislation would make a narrow clarification to the Depository Institutions Deregulation and Monetary Control Act of 1980, commonly known as DIDMCA.

The American Lending Fairness Act would clarify the limited scope of DIDMCA’s state opt-out provision, preserve parity between federally and state-chartered depository institutions, and provide greater certainty for credit unions and other financial institutions serving members and customers across state lines.

“Military members and their families are among the most mobile communities in the country, and they should be able to continue relying on their credit union when a permanent change of station, deployment or transition takes them across state lines,” said Anthony Hernandez, DCUC President & CEO. “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.”

Congress enacted DIDMCA to ensure that state-chartered financial institutions could compete on equal footing with federally chartered institutions. The law also gave individual states the ability to opt out of that framework with respect to the lending rights of institutions chartered by that state and loans made within that state.

The joint letter explains that recent efforts by certain states to apply their opt-out laws to loans made by institutions chartered elsewhere extend beyond the limited authority Congress originally intended. The coalition cited litigation in Colorado and Oregon and warned that relying solely on circuit-by-circuit court decisions could create conflicting standards and a patchwork of state lending requirements.

“The American Lending Fairness Act is a targeted clarification of existing federal law, not a wholesale rewrite of the nation’s lending framework,” said Jason Stverak, DCUC Chief Advocacy Officer. “It keeps a state’s opt-out authority within the scope Congress established, covering the lending rights of institutions chartered by that state and loans made there. Without congressional action, credit unions, other financial institutions and the consumers they serve could face additional litigation, greater uncertainty and conflicting requirements from one state to the next.”

The coalition’s letter was addressed to Senate Banking Committee Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.), as well as House Financial Services Committee Chairman French Hill (R-Ark.) and Ranking Member Maxine Waters (D-Calif.).

DCUC signed the letter alongside the American Bankers Association, America’s Credit Unions, 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.
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DCUC urges Congress to advance the American Lending Fairness Act to preserve nationwide charter parity, reinforce the dual banking system and establish a clear and stable lending framework for financial institutions and the communities they serve.