Advocacy Group Urges Federal Reserve to Block Predatory Lenders Enova and OppFi from Acquiring National Banks

These companies are seeking the privileges of national bank ownership in order to override state interest-rate protections and expand predatory triple-digit lending nationwide.

A $2,000 loan at 100% APR is prohibited in 45 states. Yet national bank ownership could allow Enova and OppFi to export the rules of a bank's home state and evade the protections adopted by voters and lawmakers elsewhere.

Enova's consumer-loan charge-offs have exceeded 50%. OppFi offers loans with APRs reaching 195%, has disclosed a 51% net charge-off rate, and derives a substantial share of its income from refinancing borrowers into continuing high-cost debt.

The CFPB labeled the company a repeat offender in 2023 after finding continued illegal conduct following a previous enforcement order.

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.