Senators Urged OppFi to Halt Bank Acquisition
Lawmakers have called on the lender to drop its bid for BNCCORP, citing concerns over high-interest loan practices.
Updated on Oct. 2, 2026 in Credit Cards
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Sens. Chris Van Hollen and Elizabeth Warren sent a letter Wednesday demanding that OppFi withdraw its application to acquire BNCCORP and BNC National Bank. The senators cited the lender's high-cost loan products and lending business model as the primary reasons for the request.
Why it matters
The lawmakers argue that the acquisition would allow the company to circumvent state interest rate caps, which generally limit rates to 36%. By pressuring the company to abandon the deal, the senators aim to curb lending practices they characterize as predatory.
OppFi reportedly charges interest rates as high as 195% APR on personal installment loans, which far exceeds the 36% interest rate cap observed in most states. Additionally, company data shows a charge-off rate exceeding 55%.
The players
Chris Van Hollen
United States Senator who oversees federal financial regulatory policy and consumer protection.
Elizabeth Warren
United States Senator focused on banking oversight, consumer financial protection, and market regulation.
OppFi
A financial services company that offers high-interest personal installment loans to consumers.
BNCCORP
The Arizona-based bank holding company currently targeted for acquisition.
The details
OppFi and other similar lenders typically partner with banks chartered in states that lack interest rate caps to issue loans across the country. Lawmakers claim this business model relies on pushing borrowers to refinance loans, which extends debt and increases total costs for households. The company's underwriting model reportedly anticipates a one-third default rate among its borrowers.
Timeline
2021: The D.C. attorney general filed a lawsuit against OppFi.
July 2026: Twenty state attorneys general urged federal regulators to block the deal.
September 2026: Sens. Van Hollen and Warren sent the letter to OppFi.
Money Landscape
This development reflects an ongoing conflict between lenders and regulators over the use of bank charters to bypass state interest rate caps. It follows a similar trend where pressure from state attorneys general and lawmakers has led firms like Enova to abandon acquisition bids.
When considering personal loans, always check the APR against your state's interest rate limits to understand if you are being charged significantly above standard benchmarks. If you have concerns about the terms of a loan, consult a qualified financial professional to review your debt options.
The takeaway
The move by lawmakers signals increased political and regulatory risk for high-interest lenders attempting to expand through bank acquisitions. Borrowers should remain vigilant about high APRs and be aware that refinancing options may significantly increase the total cost of their debt.
Further reading
For more information on how loan terms affect your budget, see our guide to Credit Cards.
Source note: This article includes information reported by Banking Dive.
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Should nonbank lenders that offer high-interest loans be allowed to acquire traditional banks?
