Predatory lender seeks bank charter, raising fears of nationwide 160% loans

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.

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 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 Lauren Saunders of NCLC.

Growing trend among fintech lenders

OppFi is not alone. Another online lender, Enova International — 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 would restore states’ authority to enforce their own rate caps
• Predatory Lending Elimination Act 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.