A military family gets orders to move across state lines—pretty standard stuff—and suddenly their trusted credit union relationship hits a legal speed bump.
That’s the kind of unnecessary friction the Defense Credit Union Council (DCUC) is trying to prevent.
DCUC just teamed up with ten other major financial services organizations to back the American Lending Fairness Act of 2026. Think of it as a legislative clarification—not a dramatic overhaul—designed to keep lending rules consistent instead of turning into a confusing state-by-state patchwork.
What’s at Stake Here
The bill, introduced by Sen. Bernie Moreno (R-Ohio) as S. 3889 and Rep. Warren Davidson (R-Ohio) as H.R. 7866, tackles a specific problem with a 1980s-era law called DIDMCA. (That’s the Depository Institutions Deregulation and Monetary Control Act, but nobody has time to say all that.)
DIDMCA was originally designed to level the playing field between federally chartered and state-chartered financial institutions. It also gave states the option to opt out of certain provisions—but only for institutions they chartered and loans made within their borders. Pretty straightforward, right?
Well, not anymore. Some states have recently tried stretching those opt-out rules to cover institutions chartered elsewhere, which goes beyond what Congress originally intended. The result? Legal battles in places like Colorado and Oregon, and the looming threat of conflicting rules depending on which state you’re in.
Why Military Families Should Care
“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.
It’s a solid point. When you’re already juggling the stress of a cross-country move, dealing with a patchwork of different state lending rules shouldn’t be added to the list.
The Coalition’s Message to Congress
In a joint letter to congressional leaders—including Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren, plus House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters—the coalition made their case clear.
The American Lending Fairness Act would preserve what’s called “charter parity” (basically, keeping the playing field level between different types of financial institutions) and prevent the headache of navigating fifty different sets of state lending rules.
“The American Lending Fairness Act is a targeted clarification of existing federal law, not a wholesale rewrite of the nation’s lending framework,” explained 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.”
Who’s Backing This Bill
DCUC isn’t going it alone. The coalition includes some heavy hitters in the financial services world:
- 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
- Online Lenders Alliance
The Bottom Line
Without congressional action, financial institutions and the people they serve could face more litigation, greater uncertainty, and a maze of conflicting state requirements. The American Lending Fairness Act aims to prevent that scenario by clarifying the original intent of DIDMCA—keeping opt-out authority limited to a state’s own chartered institutions and in-state loans.
For credit unions serving military families and other mobile communities, that clarity isn’t just nice to have. It’s essential for maintaining consistent access to responsible financial services, regardless of which side of a state line you happen to be on.