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H.R. 7866119th CongressIn committeeLatest action Mar 9, 2026Decoded by AI · checked against the record
Official title: American Lending Fairness Act of 2026
Introduced:
Read the official bill on Congress.govThe plain-language version leads. The official text is always the reference.
HR 7866 stops states from applying their interest rate caps to banks and credit unions chartered outside their borders.
50-second read · 4 questions answered below
HR 7866 clarifies the boundaries of existing federal law, which allows banks and credit unions to charge the interest rate permitted in their home state, even when lending to borrowers in other states. The bill specifies that a state's opt-out from this federal rule applies only to lenders the state itself charters, not to out-of-state lenders. States that have tried to apply opt-outs broadly would see that authority narrowed.
The bill directly affects banks, credit unions, and borrowers, particularly those seeking personal loans in states with strict interest rate caps. State governments that have enacted broad interest rate limits would have their regulatory reach reduced under this bill.
Borrowers in states with lower rate caps may continue to receive loan offers from out-of-state lenders charging higher rates permitted by those lenders' home states. State governments would retain rate-setting authority only over the banks and credit unions they license, not over lenders operating across state lines.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the House Committee on Financial Services.