Advocacy Group Urges Federal Reserve to Block Enova and OppFi Bank Acquisitions Over Predatory Lending Concerns
Summary
This is an advocacy/petition page from Americans for Financial Reform urging the public to pressure the Federal Reserve to block predatory lenders Enova International and OppFi from acquiring national banks (Grasshopper Bank and BNC Bank respectively). The argument is that these lenders, known for triple-digit APR loans (100-195%), charge-off rates exceeding 50%, and a history of consumer protection violations, would use national bank charters to override state interest-rate caps and export predatory lending nationwide. Over 60 organizations have demanded public hearings and a full Federal Reserve Board vote on these acquisitions.
Source
bskyAdvocacy Group Urges Federal Reserve to Block Enova and OppFi Bank Acquisitions Over Predatory Lending Concernsactionnetwork.orgKey quotes
· 5 pulledEnova and OppFi want to use that privilege to evade protections established by other states.
A $2,000 loan at 100% APR is prohibited in 45 states, yet these acquisitions could allow the companies to impose those rates on people living in those states anyway.
Enova's consumer loans have experienced charge-off rates exceeding 50%.
A federal banking charter must not become a license to nullify state consumer protections, target financially vulnerable communities, or normalize triple-digit interest rates throughout the banking system.
The CFPB labeled the company a repeat offender in 2023 after finding continued illegal conduct following a previous enforcement order.
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