Opportunity Financial (OppFi), a lender that offers installment loans with annual percentage rates (APRs) of 160% or more, is seeking approval to acquire BNC Bank and operate as a national bank. If approved, the acquisition could allow OppFi to rely on federal banking laws applicable to national banks when making loans, raising concerns that borrowers in California could gain access to loans carrying interest rates that exceed the limits imposed on many state-licensed lenders. At Khan Law, California bankruptcy lawyer Alia Khan Abedelal monitors developments that may affect California consumers struggling with overwhelming debt, including changes that could make high-interest borrowing more widely available.
High-interest installment loans can become difficult to repay because a substantial portion of each payment goes toward interest instead of reducing the principal balance. As balances remain high, borrowers may rely on additional credit to keep up with existing payments or cover everyday expenses, creating a cycle of debt that can lead to collection actions, damaged credit, and ongoing financial hardship. OppFi’s proposal also follows Enova’s announced plan to acquire Grasshopper Bank, raising broader questions about whether more nonbank lenders will seek national bank charters in the future.
If high-interest debt has become difficult to manage, it is important to explore your legal options before your financial situation worsens. At Khan Law, Alia Khan Abedelal helps individuals and families burdened by overwhelming debt pursue bankruptcy relief and other solutions available under federal law. Seeking legal guidance early may help stop collection efforts and provide a path toward lasting financial stability.