OppFi’s Acquisition of BNC Bank Would Circumvent Interest Rate Limits in 45 States
WASHINGTON – Opportunity Financial (OppFi), a predatory lender that charges interest rates of 160% or higher, is seeking approval from the Trump Administration to buy BNC Bank, a national bank. Advocates at the National Consumer Law Center (NCLC) warn approval would allow OppFi to ignore interest rate limits in 45 states.
“OppFi’s 160% interest charges are outrageous. President Trump should not allow OppFi to become a national bank and spread high interest rate pain across the country,” said Lauren Saunders, senior attorney at the National Consumer Law Center. “At a time of an affordability crisis, the Trump Administration is considering allowing new national banks that would charge triple-digit interest rates, well above state interest rate limits approved by voters and legislatures in 45 states.”
The vast majority of states have interest rate limits that apply to nonbank lenders. For example, the median annual percentage rate (APR) limit on a $2,000, two-year loan is 35.5%, and 45 states prohibit a 100% APR on such a loan. Federal law allows national banks to charge any interest rate allowed in their home state, ignoring the laws of other states. National banks typically put their headquarters in states that do not cap their rates.
“With the Trump Administration considering allowing national banks to charge 160% APRs, Congress must cap interest rates and close the loophole that exempts banks from state interest rate laws,” Saunders added. “Voters in red and blue states overwhelmingly oppose high interest rates. With people struggling to pay rent and buy groceries, the Trump Administration should not open the floodgates to banks charging 100% APR or higher and loans that put people in debt traps and ruin their credit ratings.”
Voters in states as diverse as Arizona, Colorado, Montana, Nebraska, and South Dakota have overwhelmingly voted to reduce interest rates to 36% or less. Senator Whitehouse’s bill, S. 3721, the Empowering States’ Rights to Protect Consumers Act, would close the loophole that allows banks — and their credit card divisions — to ignore state interest rate limits. Senator Reed’s S. 3793, Predatory Lending Elimination Act, would impose a federal 36% interest limit while allowing states to set lower rates.
OppFi’s proposed acquisition of BNC Bank follows the application of Enova (owner of CashNetUSA, NetCredit and OnDeck) to buy Grasshopper Bank, which would similarly allow Enova to make 100% interest rate loans across the country. Enova’s application is pending before the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board (Fed), and OppFi’s application would need to be approved by the OCC, Fed, and Federal Deposit Insurance Corp. (FDIC).
Related Resources
- Report: Predatory Installment Lending in the States: How Well Do the States Protect Consumers Against High-Cost Installment Loans?, Dec. 19, 2025
- Brief: Comparing APRs on Small Loan Alternatives, Jan. 7, 2025
- Report: Larger Loans Need Lower Rates: A 50-State Survey of the APRs Allowed for a $10,000 Loan, Mar. 6, 2024
- Brief: Why Cap Interest Rates at 36%?, Aug. 4, 2021
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