American Banker: Subprime lender OppFi sues to continue making loans in California

American Banker, March 10, 2022, Subprime lender OppFi sues to continue making loans in California

Consumer advocates and state policymakers have called the arrangement a “rent-a-bank” scheme in which OppFi is using FinWise Bank’s charter to evade California’s 36% rate cap. But in a lawsuit filed this week, Chicago-based OppFi argued that it is not the actual lender on the loan — and that since it only performs certain services on behalf of FinWise Bank, the state’s rate cap does not apply.