High-cost lending is once again under the national spotlight after a coalition of 123 consumer advocacy organizations urged federal regulators to reject fintech lender OppFi's proposed acquisition of BNC Bank.

According to the National Consumer Law Center (NCLC), consumer advocates argue that approving the transaction would allow OppFi to expand its lending operations nationwide under a bank charter while continuing to offer installment loans with annual percentage rates (APRs) reported as high as 195%.

The proposal has reignited an ongoing debate over access to credit, consumer protection, and the role high-cost lending plays for Americans facing financial hardship.

OppFi’s application, like the recent and still-pending application by Enova International to acquire Grasshopper Bank, would be an unprecedented use of a national bank charter for the purposes of a business model built on outrageously usurious and destructive loans that have no place in the national bank system:

• OppFi’s rates typically reach 160% and as high as 195%.1 Loans at those rates are debt traps, not responsible credit.

• OppFi’s interest rates are illegal in up to 45 states, depending on the size of the loan.

• OppFi seeks a bank charter to avoid the nearly unanimous judgment across the country that its loans are destructive and should be prohibited.

• OppFi’s charge-offs are over 55%, proof of its irresponsible lending.3 Charge-offs at those rates have never been tolerated at national banks. That rate is more than 14 times the credit card charge-off rate and even 10 times the credit card charge-off rate at the peak of the Great Recession.4 Consumers default in high numbers, many others struggle to repay, and OppFi’s lending is not based on ability to repay.

• OppFi’s frequent refinancing promotes long-term debt and disguises defaults.5 As much as 75% of OppFi’s pre-tax income comes from refinancing, and about half of OppFi customers refinance, sometimes multiple times and within two or three months of taking out the loans.6 Between defaults and refinances, very few OppFi borrowers repay their loans in full on the loan’s original terms.

  - Re: Application of Opportunity Financial (“OppFi”) to FDIC (#20260654), OCC (#27220) and FRB acquire BNC National Bank, to create and merge with OppFi Bank, and to become a bank holding company, 91 Fed. Reg. 42961 (July 13, 2026)

Why APR Matters More Than the Monthly Payment

When consumers need money quickly, it's easy to focus on whether they can afford the monthly payment. However, the Annual Percentage Rate (APR) often provides a much clearer picture of the true cost of borrowing.

APR reflects not only the interest charged on a loan but also certain fees associated with borrowing. While longer repayment terms can reduce monthly payments, a high APR can dramatically increase the total amount repaid over the life of the loan.

For borrowers already experiencing financial stress, these additional costs can make it more difficult to regain financial stability.

Why Consumer Advocates Are Concerned

The coalition opposing the acquisition argues that granting OppFi a bank charter could significantly expand access to high-cost lending products across the country.

As explained by the National Consumer Law Center, advocates believe the proposal could allow loans carrying triple-digit APRs to become more widely available in states that currently have stronger consumer lending protections.

Supporters of the transaction, meanwhile, argue that expanding access to credit provides financing options for consumers who may not qualify for traditional bank loans.

The disagreement reflects a broader policy debate that has continued for years: how to balance access to credit with protections against borrowing costs that may become difficult for consumers to manage.

High-Cost Loans Can Create Long-Term Financial Challenges

High-cost loans are often marketed as solutions for emergency expenses, unexpected bills, or temporary cash shortages.

While these loans may provide immediate access to funds, borrowers should carefully evaluate the long-term financial commitment before accepting any loan offer.

Depending on the loan terms, high interest rates can result in borrowers repaying significantly more than the amount originally borrowed. If financial circumstances don't improve as expected, monthly payments can strain already tight budgets and make it harder to keep up with other financial obligations.

Understanding the full repayment schedule—not just the initial payment—is an important step before signing any loan agreement.

Compare Your Options Before Borrowing

Before accepting any loan, consumers should take time to compare multiple financing options whenever possible.

Questions worth asking include:

• What is the loan's Annual Percentage Rate (APR)?

• What will the total repayment amount be over the life of the loan?

• Are there origination fees or other charges?

• Can the loan be paid off early without penalty?

• Are there lower-cost alternatives available through banks, credit unions, or community lenders?

Reviewing these details can help borrowers make more informed financial decisions and avoid unexpected borrowing costs.

Financial Emergencies Often Highlight Larger Financial Challenges

Unexpected expenses happen to nearly everyone. Medical bills, vehicle repairs, job interruptions, or emergency home repairs can create situations where immediate access to cash feels necessary.

While borrowing may sometimes be unavoidable, recurring reliance on high-cost loans can also be a signal that a household's broader financial plan needs attention.

Building an emergency fund, improving credit health, reducing existing debt, and creating a realistic monthly budget can help reduce dependence on expensive forms of borrowing over time.

The Bottom Line

The debate surrounding OppFi's proposed acquisition highlights a larger conversation taking place across the financial industry: how consumers can access needed credit while remaining protected from borrowing costs that may become difficult to repay.

Regardless of how regulators ultimately decide, one lesson remains consistent for every borrower—understanding the full cost of a loan before signing is one of the most important financial decisions you can make.

Taking a few extra minutes to compare loan terms, review the APR, and understand the total repayment amount may help prevent financial challenges long after the borrowed money has been spent.

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