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Wednesday, February 9, 2022

Consumers Beware: OppFi Loans is Breaking the Law

 From NewsBreak:


The Chicago Sun-Times reports that online lender OppFi engaged in a shadow lobbying campaign to overturn Illinois’ new Predatory Loan Prevention Act (PLPA) which caps interest rates on payday loans at 36%.

Pritzker Signs Predatory Loan Prevention Act

The Illinois law knocked out of business those who dealt in auto-title and personal loans, payday advances and other forms of finance whose interest rates are well into the triple digits, often 400% and higher. It caused big trouble for Chicago-based Opportunity Financial, which does business as OppFi.

While online lenders like OppFi often use a “rent-a-bank” strategy to circumvent state rate caps, the Illinois law prevents OppFi from using that tactic in Illinois.

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