> ## Content Index
> Fetch the complete content index at: https://www.consumernews.ai/llms.txt
> Use this file to discover other available public pages before exploring further.

# Predatory lender seeks bank charter, raising fears of nationwide 160% loans
- URL: https://www.consumernews.ai/predatory-lender-seeks-bank-charter/
- Published: 2026-05-01T17:46:24.000Z
- Updated: 2026-06-19T19:16:20.000Z
- Description: Proposal comes amid broader push by high-cost lenders to obtain bank charters under federal regulators
- Author: James R. Hood
- Tags: Money

### Triple-digit lending could go national

A high-cost online lender is seeking federal approval to expand its reach — and potentially its sky-high interest rates — nationwide.

Opportunity Financial, known as OppFi, has applied to acquire BNC Bank, a move that would convert it into a national bank. Consumer advocates say that shift would allow the company to sidestep interest-rate caps in most states and continue charging annual percentage rates (APRs) of 160% or more.

[Subscribe](#/portal/signup)

The application is under review by federal regulators including the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation.

### How the loophole works

At the center of the dispute is a long-standing feature of federal banking law: nationally chartered banks can “export” interest rates from their home state, even when lending to borrowers in states with stricter caps.

Advocates at the [National Consumer Law Center](https://www.nclc.org/another-100-apr-bank-seeks-trump-administration-approval/?ref=consumernews.ai) say that would effectively nullify rate limits in 45 states if OppFi becomes a bank.

Most states cap interest rates for nonbank lenders. On a typical $2,000, two-year loan, the median APR cap is about 35.5%, and nearly all states prohibit rates above 100%.

> By contrast, OppFi’s current products can carry APRs of 160% or higher.

### Affordability Watch

The proposal lands as consumers face sustained financial pressure from housing, food, and debt costs — raising concerns about the impact of ultra-high interest loans.

Consumer advocates warn that triple-digit APR loans can:

- Rapidly balloon balances, even on small loans
- Trap borrowers in cycles of reborrowing
- Damage credit scores through missed or escalating payments

“Allowing national banks to charge these kinds of rates would spread high-cost debt across the country,” [said](https://www.nclc.org/another-100-apr-bank-seeks-trump-administration-approval/?ref=consumernews.ai) Lauren Saunders of NCLC.

### Growing trend among fintech lenders

OppFi is not alone. Another online lender, [Enova International](https://www.theoutragedconsumer.com/p/fed-should-reject-banking-application?utm%5Fsource=publication-search) — owner of CashNetUSA, NetCredit, and OnDeck — has applied to acquire Grasshopper Bank.

Advocates say both deals reflect a broader strategy: fintech lenders pursuing bank charters to avoid state-level consumer protections.

### Legislative pushback

Lawmakers are already weighing responses.

Two bills introduced in Congress aim to close the so-called “rate exportation” loophole:

- [Empowering States’ Rights to Protect Consumers Act](https://www.congress.gov/bill/119th-congress/senate-bill/3721?ref=consumernews.ai) would restore states’ authority to enforce their own rate caps
- [Predatory Lending Elimination Act](https://www.congress.gov/bill/119th-congress/senate-bill/3793?ref=consumernews.ai) would impose a national 36% APR cap

Voters in states across the political spectrum — including Arizona, Colorado, Montana, Nebraska, and South Dakota — have already approved rate caps at or below 36%.

### What this means for consumers

If approved, OppFi’s bank acquisition could mark a significant shift in how high-interest loans are regulated — and who is protected.

For borrowers, the stakes are straightforward:

- Loans that are illegal in your state today could become widely available
- Interest rates far above traditional credit cards or personal loans could become normalized
- Consumer protections set by state law may no longer apply

The decision now rests with federal regulators — and could shape the future of high-cost lending nationwide.

[Subscribe](#/portal/signup)