RESOLVING THE LEDGER
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Consumer advocacy groups and the state’s top law enforcement official are opposing a Chicago company’s plan to obtain a national bank charter — arguing the move would allow it to lock customers into loans at more than 100% interest rate.
Their ire is directed at online lender and servicer Opportunity Financial, which is seeking regulatory approvals for a $130 million deal to acquire BNCCORP and its subsidiary BNC National Bank, a nationally chartered commercial bank in Arizona.
If approved, OppFi would be able to evade state laws that cap interest rates for borrowers.
Illinois has a 36% interest rate cap on consumer loans and is among 45 states that impose a rate limit, according to the National Consumer Law Center.
“Largely, banks and credit unions are not the problem in the predatory lending space,” said Jane Doyle, director of policy and advocacy for the Woodstock Institute, a Chicago nonprofit that advocates for consumer protections. “The problem comes in when companies like OppFi try to get their own banking charter to get around that exemption.”
Federal banking rules allow banks with national charters to levy the maximum interest rates established in their home state to borrowers in states with stricter laws or lower caps. So online companies like OppFi are able to skirt state caps by partnering with charter banks in states like Utah that lack interest rate caps — partnerships described as a "rent-a-bank" scheme by industry critics.
Meanwhile, borrowers of the high interest loans often end up paying double or triple the principal, pushing them further into debt. Studies show these loans disproportionately affect Black and Latino communities. And lax federal regulations and the dismantling of consumer protections by the Trump administration is making these loans more pervasive, evident by a surge of fintech companies and other digital platforms applying for national bank charters, like Loop-based Enova International.
Enova is expected to close its $369 million purchase of New York-based Grasshopper Bancorp and its online bank subsidiary during the second half of the year — a deal that has also drawn opposition from consumer advocacy groups and attorneys general.
OppFi confirmed plans to relocate its headquarters from 130 E. Randolph St. to Utah, following its acquisition of BNCCORP. The cash and stock transaction, expected to close in the fourth quarter, requires regulatory approval from the Office of the Comptroller of the Currency, Federal Reserve Board and Federal Deposit Insurance Corp.
Opposition mounts
Illinois Attorney General Kwame Raoul and 17 other state attorneys general sent a letter on Aug. 6 to the OCC, Federal Reserve and FDIC urging the agencies to deny OppFi’s pending acquisition.
“OppFi should not be granted a national bank charter because it targets vulnerable consumers with risky, unsafe and unsound loans that cause more financial harm,” Raoul said.
They argued OppFi's acquisition would increase "unaffordable high-cost loans” that pose significant safety concerns for consumers, small businesses and the banking system while allowing the company to circumvent state laws protecting borrowers. A similar letter about Enova, signed by 15 state attorneys general, including Raoul, was written in July.
“It’s unfortunate that a group of politically motivated AGs chose to issue a poorly researched letter that is unsupported by the facts, attacking companies focused on providing credit access,” OppFi said in a statement. “OppFi's mission is to expand access to credit for hardworking consumers who are overlooked by traditional financial institutions.”
The company markets personal and small business loans to help consumers cover emergencies, medical bills, debt consolidation and large purchases, among other expenses. OppFi’s available market includes 48 million Americans and 12 million small businesses lacking traditional credit options, according to its website.
“They’re not writing $500,000 mortgages,” Dave Storms, director of equity research at Dallas-based Stonegate Capital Partners, said.
Outside OppFi’s headquarters at 130 E. Randolph St. in the Loop.
Ashlee Rezin/Sun-Times
Storms said their business is predicated on volume, with most loans around $1,000.
OppFi said every applicant is evaluated on income and cash flow to verify their ability to repay.
But its customers are struggling to pay them back, according to financial filings and customer accounts.
OppFi reported 52.3% of its outstanding loan balances on an annualized basis were charged off in the second quarter due to delinquencies, personal bankruptcies or other reasons deemed uncollectible. An annualized charge-off rate is a proportion of total loans deemed uncollectible, with the creditor typically writing it off as bad debt after 90 days of missed payments.
OppFi said evaluating short-term credit using its annualized charge-off metrics is misleading.
“The true measure of repayment health is lifetime charge-off rate, which holds steady within our historical baseline of 20% to 25%,” the company said.
Still, the recently reported charge-off rate was higher than analysts expected, according to Storms, who covers the company.
“One data point doesn't make a trend but certainly something to monitor,” he said.
‘Repairing my life’
Facing mounting bills and a new mortgage payment on a house she inherited after her parents died, Courtney Thompson turned to OppFi to fill the gap. She went through the quick approval process in 2024, borrowing $3,000.
In September 2025, she stopped making the monthly $124.17 repayments. A month later, the loan was written off.
“I did the best that I could to stay afloat,” the 40-year-old South Holland single mother of three said. “After a while, I got behind.”
Providing for her family and juggling monthly bills, as well as her parents funeral costs took precedence.
“I communicated with OppFi and let them know what was going on,” she said. “They didn't care....
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