State Attorneys General Urge Congress to Reject DC Usury Law Legislation

Eighteen state attorneys general, led by Dan Rayfield, urged Congress to reject H.R. 7866, the American Lending Fairness Act of 2026. In a letter sent on November 9, 2026, the attorneys general argued that the legislation would improperly limit states’ ability to opt out of interest-rate preemption provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980. The letter also cited the threat posed by bank-fintech partnerships that enable nonbank lenders to issue high-interest loans in states with interest-rate caps.

The attorneys general assert that banking and consumer protection fall within the historic police powers of state governments. Their opposition seeks to preserve broad state authority to regulate interest rates, particularly concerning out-of-state banks and nonbank lenders.