Here is an update on the lawsuit filed by three trade associations against the Colorado Attorney General and UCCC Administrator challenging the application of the Colorado opt-out statute to out-of-state, state chartered, FDIC-insured banks.
On June 18, 2024, Judge Domenico from the U.S. District Court for Colorado issued a preliminary injunction enjoining the Colorado Attorney General and UCCC Administrator from enforcing the Colorado statute opting out of Section 521 of DIDMCA against members of the plaintiff trade associations who make loans from outside Colorado to Colorado residents. The defendants have until July 18 to appeal the District Court’s order to the 10th Circuit.
In the meantime, on July 2, the plaintiffs filed a first amended complaint against the defendants. The main change from the original complaint is the omission of the Commerce Clause count. Shortly after the filing of the First Amended Complaint, the Court dismissed as moot the defendants’ motion to dismiss the original complaint. The defendants have 14 days or until July 16 to file a response to the First Amended Complaint.
The preliminary injunction remains in full force and effect, notwithstanding the filing of the First Amended Complaint.