US (AMERICANS FOR FINANCIAL REFORM) : ENOVA and OPPFI want bank charters to spread debt traps nationwide.

 

Let me fill you in on what’s happening. National banks like Chase or BNC or Wells Fargo can generally charge interest rates on loans based on what’s allowed in whatever state the bank has its headquarters – even when lending to people in other states. It’s a loophole that predatory lenders, CashNetUSA and OppLoans, want to exploit to ignore state laws across the country and maximize profits at the expense of consumers. These companies are trying to acquire a national bank specifically so they can circumvent laws and offer loans with outrageous interest rates of more than 100% APR (in some cases even as high as 195%) in the 43 states that have banned their predatory products. Fortunately, they need approval from the Federal Reserve to do it and we still have time to stop it. Sign and send a direct message to the Fed demanding it block Enova and Opportunity Financial from acquiring a national bank to override state laws and spread 100% APR debt traps nationwide. ADD YOUR NAME More than 60 consumer, civil rights, labor, small business, legal services, and community organizations are demanding public hearings and a full vote of the Federal Reserve Board on these unprecedented proposals. The Board must not bury decisions of this magnitude inside a regional reserve bank or approve them without hearing directly from the people and communities that would suffer the consequences. Please send your message now. - Tom. Tom Feltner (he/his) Associate Director of Consumer Policy Americans for Financial Reform. Support the campaign

Americans for Financial Reform