OppFi Keeps Fighting to Legalize Loan Sharking
I wrote back in March about fintech lender OppFi’s California quest to keep charging 160% interest rates in defiance of state law.
OppFi Seeks Permission to Keep Charging Outrageous Interest Rates
Company admits in legal brief it wants to exceed 36% interest
More recently, OppFi has come under fire in Texas for using a “rent-a-bank” scheme to issue loans with 130% interest rates:
Don’t Mess with Texas: Fintech Lender OppFi Sued for Charging 130% Interest on Loans
OppFi has run afoul of interest rate caps in DC and California, too
Now, the California case is moving forward — and Jason Mikula at Fintech Business Weekly reports on how that’s going:
According to JDSupra’s analysis of the DFPI filing (emphasis added):
“[T]he DFPI cites various authorities in support of its assertion that for more than a century, ‘California law has recognized the principle of looking at substance over form in evaluating usury claims and does not permit evasion of usury laws through disguise or subterfuge.’
It also cites cases from other courts, including a California federal district court’s decision in CashCall, that have used a ‘true lender’ analysis to uphold usury challenges.”
In short, a predatory fintech lender is using a willing bank partner to offer loans to vulnerable consumers at outrageous (and usurious) rates. Now, they’re being called out — and rather than backing down, OppFi is doubling down — suing for the right to profit from the pain of struggling consumers.
MORE on Fintech Lenders and Rent-a-Bank Usury
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Interest Rates in Excess of 4000%?!?
Fintech darling Solo Funds held accountable by Connecticut Banking Commissioner
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