What changed
Federal rules, court rulings, state lending laws and rate moves, each with its date, what it means for you, and the official source.
-
Rates
Fed raises its benchmark rate to 3.75%–4%
The Federal Open Market Committee voted 12–0 to raise the federal funds target range by a quarter point, to 3.75%–4%, citing inflation that remains elevated. It had held the range at 3.50%–3.75% at its July 2026 meeting after three cuts in late 2025.
What it means: Rates on variable-rate debt such as HELOCs and credit cards tend to rise after a hike, while the rate on a fixed-rate loan you already have doesn't change.
-
State law
Oregon closes the out-of-state bank rate loophole
Oregon's HB 4116, signed April 7, 2026 and effective June 5, 2026, uses the state's right under a 1980 federal law to stop out-of-state banks from exporting their home-state rates into Oregon. Consumer finance loans in Oregon have been capped at 36% since 2007, but the state regulator found more than 31,000 loans since 2020 above that cap, some topping 100% APR, made through bank partnerships.
What it means: If you live in Oregon, an online consumer finance loan priced above 36% is likely a violation, and you can report it to the Division of Financial Regulation.
-
Court ruling
Full Tenth Circuit to rehear Colorado's rate opt-out case
In November 2025 a split Tenth Circuit panel sided with Colorado, holding that its 2023 opt-out law covers loans to Colorado residents even from out-of-state state-chartered banks. On April 2, 2026 the court vacated that decision and agreed to rehear the case with all its judges; until it rules, a 2024 injunction still bars Colorado from enforcing its rate limits against the challengers' members.
What it means: Colorado borrowers may still see out-of-state bank loans priced above Colorado's own limits while the case is pending.
-
Federal rule
Credit union 18% rate ceiling extended to September 2027
The NCUA Board kept the temporary 18% interest rate ceiling for federal credit union loans and extended it to September 10, 2027. Payday alternative loans (PALs) may be priced up to 10 percentage points above the ceiling, so they top out at 28%.
What it means: A loan from a federal credit union, including a PAL, can't cost more than these caps, which often makes credit unions a lower-cost option with fair or bad credit.
-
Rates
Fed's third 2025 cut takes its rate to 3.50%–3.75%
The FOMC lowered the federal funds target range by a quarter point to 3.50%–3.75%, after cuts on September 17 (to 4%–4.25%) and October 29 (to 3.75%–4%). That was a three-quarter-point drop in about three months.
What it means: Variable rates on HELOCs and credit cards eased, and refinancing a high-rate fixed loan became worth pricing out.
-
Court ruling
Court vacates the CFPB rule removing medical bills from credit reports
The CFPB finalized a rule on January 7, 2025 that would have kept medical bills off credit reports used by lenders and barred lenders from using medical information. On July 11, 2025 the U.S. District Court for the Eastern District of Texas vacated it, finding it exceeded the Bureau's authority under the Fair Credit Reporting Act.
What it means: Medical debt can still appear on your credit report and be considered by lenders, so check your reports and dispute anything that's wrong.
-
Federal rule
New federal tax deduction for car loan interest
The One Big Beautiful Bill Act (Pub. L. 119-21), signed July 4, 2025, lets you deduct up to $10,000 a year of interest on a loan for a new personal-use vehicle with final assembly in the United States, for tax years 2025 through 2028. The loan must have started after December 31, 2024; the deduction phases out above $100,000 of modified AGI ($200,000 joint), you don't have to itemize, and you must list the VIN on your return.
What it means: If you finance a qualifying new car, the deduction can trim your tax bill, but it doesn't change the APR, so compare loan offers on cost first.
-
State law
Rhode Island ends payday lending starting in 2027
Rhode Island enacted H 5042A / S 0229A, which repeals the exception that let deferred-deposit (payday) lenders charge effective rates of about 260% APR. The change takes effect January 1, 2027, after which payday lenders can no longer charge more than 36% APR.
What it means: Rhode Island residents will lose access to storefront payday loans in 2027, so it's worth lining up a credit union PAL or other alternative now.
-
Federal rule
CFPB withdraws 67 guidance documents, including its BNPL rule
The CFPB withdrew 67 interpretive rules, policy statements, advisory opinions and other guidance, effective May 12, 2025. The list includes its 2024 interpretive rule treating buy now, pay later lenders as card issuers that must investigate disputes and credit refunds, along with guidance on medical debt collection, time-barred debt and earned wage access.
What it means: The CFPB is no longer pressing BNPL lenders to follow credit card dispute and refund rules, so read a plan's dispute and refund terms before you split a purchase.
-
Federal rule
Congress overturns the CFPB overdraft fee rule
A Congressional Review Act resolution (S.J.Res. 18, Pub. L. 119-10), approved May 9, 2025, nullified the CFPB's overdraft rule before its October 1, 2025 start. The rule would have required banks and credit unions with more than $10 billion in assets to cap overdraft fees at $5, charge only their costs, or treat overdraft as a loan with full disclosures.
What it means: Overdraft fees remain set by each bank, so turning off overdraft coverage or using a low-cost small loan may be cheaper than overdrawing.
-
Court ruling
Court vacates the $8 credit card late fee rule
The U.S. District Court for the Northern District of Texas vacated the CFPB's 2024 rule, which would have cut the late-fee safe harbor to $8 for issuers with more than 1 million open accounts, down from a typical $32. The CFPB had agreed with the industry plaintiffs that the rule exceeded its authority.
What it means: Card late fees stay higher, so autopay for at least the minimum payment remains the simplest way to avoid them.
-
Federal rule
Payday rule's two-failed-withdrawals limit takes effect
The payment provisions of the CFPB's payday, vehicle title and high-cost installment loan rule took effect March 30, 2025: after two failed attempts to pull a payment from your account, a covered lender can't try again unless you specifically authorize it. Two days earlier, the CFPB said it would deprioritize penalties for violations and was considering narrowing the rule.
What it means: If a payday or title lender keeps hitting your account after two bounced attempts without your new permission, you can complain to the CFPB and your state regulator.