California regulator sues fintech lender that sued rate cap

By Jon Hill (April 12, 2022, 10:23 p.m. EDT) – California’s financial services regulator has accused fintech lender Opportunity Financial of defrauding state borrowers with high-cost illegal loans and is asking for at least $100 million in penalties, firing him back amid the company’s legal efforts to block what it claims is over-enforcement by the agency.

The state’s Department of Financial Protection and Innovation filed a countersuit Friday in Los Angeles County Superior Court alleging that Opportunity Financial LLC, or OppFi, is engaging in a “bank leasing trick designed to circumvent interest rate limits set under California law.

This alleged “ruse” involves taking out loans through an out-of-state banking partner…

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