Los Angeles County Superior Court Judge Gary D. Roberts filed a final Statement of Decision and Judgment in favor of Opportunity Financial, LLC (“OppFi”) in a key “true lender” case. See Statement of Decision and Judgement, Opportunity Financial, LLC, v. Hewlett, No. 22STCV08163 (Cal. Super. Ct., dated May 19, 2026 and May 20, 2026, respectively). For background on this case, see our ALERTS of Mar. 13, 2026 and Mar. 28, 2022 and Elizabeth L. Anstaett and Mercedes C. Ramsey, Opportunity Financial LLC v. Hewlett: True Lender and Usury Issues, 77 CONSUMER FIN. L.Q. REP. 221 (2024). The court affirmed its rejection of the California Department of Financial Protection and Innovation’s (“DFPI”) claim that OppFi was the “true lender” of certain loans originated by FinWise Bank, a federally insured Utah bank, under the OppFi name (“OppFi Loans”). The DFPI could now appeal.
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Month: May 2026
NCUA Joins OCC In Issuing Interchange Preemption Rule; Colorado Passes Interchange Bill
On May 19, 2026, the National Credit Union Administration (NCUA) submitted a rule to the Office of Management and Budget’s Office of Information and Regulatory Affairs asserting that federal law preempts the Illinois Interchange Fee Prohibition Act (IFPA), which bans the collection of interchange fees on taxes and tips and is set to become effective July 1, 2026. See our ALERT of Feb. 26, 2026. The Office of the Comptroller of the Currency (OCC) issued a similar interim final rule clarifying national banks’ power to charge non-interest charges and fees and interim final order on April 24th, confirming that federal law preempts the IFPA for national banks and federal thrifts. The OCC’s order is effective June 30, 2026.
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State Law Questions? Our Digests Have Answers: Special Offer On New Digest Subscriptions
Consumer financial services law is always in state of flux. After over a decade of dominance by the federal Consumer Financial Protection Bureau, the Trump administration has made an effort to scale back the CFPB’s reach. Consequently, state regulators and attorneys general are stepping up to fill the void and reassert historical authority with expanded tools in hand. As a practical matter for the industry, this shift in balance calls for greater attention to state law and regulation as a matter of ongoing compliance strategy.
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Second Circuit Upholds National Bank Preemption In Cantero On Remand
The U.S. Court of Appeals for the Second Circuit has issued its long awaited opinion on remand in Cantero v Bank of America, N.A.1 upholding national bank preemption with regard to New York’s interest on escrow law. This decision creates a clear conflict with the First Circuit in Conti and the Ninth Circuit in Kivett, setting the stage for a potential appeal to the U.S. Supreme Court for further guidance on the proper application of the “nuanced comparative analysis” required by the Supreme Court’s earlier decision in Cantero. See our ALERT of Dec. 11, 2025. The Second Circuit’s decision was not unanimous, however, so a request for en banc review is possible.
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