WeVote
Log In

Bill

Bill

HR 7866

American Lending Fairness Act of 2026

119th Congress Introduced by Andy Barr and 3 co-sponsors

Allows states to cap interest rates only for their own chartered banks, preventing states from restricting out-of-state lenders' rate terms.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 7866

Legislative bill overview

HR 7866 modifies federal preemption rules for state-chartered banks' interest rate lending by allowing individual states to opt out of federal preemption—but only for loans made by banks they themselves charter. Currently, federal law allows states to set interest rate caps that apply broadly. This bill would limit states' ability to restrict out-of-state bank lending while preserving their authority over in-state institutions.

Why this is important

Interest rate caps directly affect borrowing costs for consumers and small businesses. This bill reshapes the balance of power between state and federal regulators, potentially making credit more accessible in some states while limiting others' consumer protection tools. The change could increase out-of-state lending competition but may reduce state regulatory flexibility.

Potential points of contention

  • State sovereignty vs. federal uniformity: States lose power to regulate out-of-state lenders operating within their borders, which consumer advocates may view as weakening local protections
  • Market access and predatory lending: Allowing unlimited out-of-state lending could increase access to credit in underserved areas but may also expose consumers to higher rates if states can't cap out-of-state lenders
  • Charter arbitrage concerns: Banks may relocate charters to states with looser interest rate rules, creating competitive pressure on stricter states to relax regulations

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.