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Rent-a-Banks and High Cost Lending

Rent-a-Banks and High Cost Lending

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FintechNews RoundupUSA
··1 min read

California has capped interest rates at around 37% per year on some consumer loans; despite this companies are able to offer high interest loans with OppLoans charging 160% on a typical loan in California according to the Wall Street Journal; the higher rate is made possible due to their bank partnership with a Utah bank called FinWise; this is now source of contention for state regulators and consumer advocates; some regulators believe that companies such as OppLoans are intentionally finding ways to evade state law; according to OppLoans, the company “is not intentionally evading or breaking state law.” OppLoans “provides outsourced services to…banks to help them provide loans to credit-challenged Americans.” The Wall Street Journal digs further into this issue and the companies that currently operate under a similar framework. The Wall Street Journal

  • Emily Donato

    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.

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