OCC Should Not Allow CashNetUSA and NetCredit to Ignore State Interest Rate Limits
WASHINGTON – The Office of the Comptroller of the Currency (OCC) should deny the application of Enova International, the owner of CashNetUSA and NetCredit, to become a national bank, advocates urged in comments submitted Friday to the OCC. If Enova were allowed to become a national bank, it would be able to offer its 100% to 300% APR loans across the country, ignoring state laws nationwide.
“During an affordability crisis, when President Trump has supported a 10% cap on credit card rates, his Administration must reject a new national bank that charges 100% to 300%,” said Lauren Saunders, associate director of the National Consumer Law Center. “It would be unprecedented for the Trump Administration to sanction a 100% APR bank.”
Through its CashNetUSA and NetCredit brands, Enova makes installment loans and lines of credit at rates that reach 100% to 300% APR. It has an astoundingly high charge-off rate over 50%, revealing a predatory and highly deceptive business model that traps people in unaffordable loans. If Enova is allowed to acquire Grasshopper Bank and become a national bank based in Utah, federal law would allow Enova to charge these high rates, without any limit, anywhere in the country. Currently, 45 states prohibit those rates on many installment loans.
Approval of Enova’s predatory 100% APR bank would be an assault on people across the country and political spectrum who are worried about the affordability crisis and strongly support state interest rate limits.
“To stop the spread of predatory bank loans that exploit the affordability struggles of working families, Congress should approve Senator Reed’s bill to cap interest rates at 36% and Senator Whitehouse’s bill to require national banks to comply with state interest rate limits,” Saunders added.
In addition to the approval of the OCC, Enova’s application must also be approved by the Federal Reserve Board. Public comments are being accepted by the Board through Friday, February 27 at [email protected].
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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