Twenty state attorneys general, led by Illinois AG Kwame Raoul, wrote a letter urging the OCC, Fed and FDIC not to approve proposed fintech purchases of banks.
The letter called attention to high-cost lender Opportunity Financial’s 369 million purchase of Grasshopper Bank.
The attorneys general argued the deals incentivize predatory lending and leave consumers vulnerable to harm. Most states have interest-rate caps, often 36% for small loans, but Enova partners with banks chartered in states with no interest rate caps, allowing higher-rate loans.
The AGs sought public hearings and ample opportunity for comment before regulators tendered a final decision.
Enova Chief Strategy Officer Kirk Chartier defended the acquisition, noting that as a national bank Enova would operate under full federal banking agency supervision and consumer protections.