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.
