Banking and Finance Law Daily Wrap Up, MERGERS AND ACQUISITIONS—Warren warns regulators about OppFi’s ‘persistent, predatory’ strategies,(Aug. 17, 2026), (Aug 17, 2026)
Organizations Mentioned:BNC National Bank | BNCCORP, Inc. | National Community Reinvestment Coalition | OppFi National Bank | Opportunity Financial Inc. | Rise Economy | Woodstock Institute
By Suzanne Cosgrove
OppFi is seeking to acquire BNC National Bank, a national bank subsidiary, and become a bank holding company, allowing it to expand its lending operations to all 50 states.
U.S. Sen. Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, cautioned regulators against what she characterized as the predatory financial strategies practiced by Opportunity Financial’s (OppFi) and urged the OCC, FDIC and the Fed to reject OppFi’s application to acquire BNC Bank.
A closer look. In a letter dated August 13 sent to Travis Hill, chairman of the FDIC, Jonathan Gould, Comptroller of the Currency, and Kevin Warsh, chairman of the Federal Reserve, Warren said that although OppFi brands itself as a lender that “empower[s] everyday consumers to overcome financial hurdles and build long-term financial stability,” a closer look at its business model reveals “persistent, predatory financial strategies.”
A nonbank lender that provides financial services to consumers through installment loans, OppFi charges up to 195 percent APR on personal installment loans [and] its charge-off rates (when a lender determines a debt is unlikely to be collected) exceed 55 percent, Warren said.
She noted a 2021 lawsuit filed by the D.C. Office of the Attorney General alleged that “OppFi’s underwriting model anticipates that up to one third of their borrowers will be unable to repay their loans and default.” Further, a recent report found the majority of OppFi’s income comes from loan refinancings, “reinforcing concerns that its business model is focused on extending loans that people cannot afford to repay on their original terms without reborrowing,” she said.
State AGs irate. Chicago-based OppFi is seeking to acquire Bismarck, North Dakota-based BNCCORP, Inc., allowing it to indirectly acquire BNC National Bank, which is based in Glendale, Ariz. The banks would be merged to create a holding company called OppFi National Bank.
As reported previously (see Banking and Finance Law Daily, Aug. 7, 2026), Illinois Attorney General Kwame Raoul and a coalition of 18 attorneys general earlier this month issued comment letters asking the OCC and the Fed to deny OppFi’s application.
The AGs joined a handful of consumer and industry groups that have weighed in against the merger, including the National Community Reinvestment Coalition (NCRC), Woodstock Institute, and Rise Economy.
OppFi targets vulnerable consumers with low credit scores or financial difficulties. The company offers installment loans ranging from $500 to $5000, with interest rates approaching 200 percent annual percentage rates (APR), the AG coalition stated. For an already struggling consumer, which means that an OppFi loan of $4000 at a 160 percent APR would cost at least $10,712.52 when paid back over 18 months.
Federal preemption benefits. “In addition, “OppFi appears to be attempting to expand its predatory lending operations to all 50 states in the country by seeking to become a national bank [through acquiring BNC Bank] that enjoys the benefits of federal preemption,” Warren said.
She said the online lender is known for evading state interest rate caps through bank partnerships, or “Rent-A-Bank” schemes. Currently, Warren said, 45 states and the District of Columbia have interest rate caps in place for at least some loans, but high-cost lenders have exploited the lack of a federal rate cap to evade state interest caps by partnering with banks based in a state with no interest rate cap.
By acquiring BNC, OppFi would unlock the benefits of the bank’s national bank charter for the purpose of expanding its predatory lending strategies to the national stage, she said.
Raoul and his coalition also warned regulators that at the state level, a national bank charter would impede state attorneys general from protecting consumers by extending federal preemption to OppFi and potentially to other high-interest lenders.
Cap on credit card rates. To further her argument against OppFi’s application, Warren pointed out that last January President Trump called for a one-year, 10 percent cap on credit card interest rates to prevent consumers from being “ripped off” by credit card companies.
Although Trump’s promise has not been enforced, by approving OppFi’s application, the FDIC, OCC, and the Board would be veering dramatically from the president’s support for capping consumer lending expenses, she said.
Companies: BNCCORP, Inc.; BNC National Bank; OppFi National Bank; National Community Reinvestment Coalition; Opportunity Financial Inc.; Rise Economy; Woodstock Institute
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