Warren, Van Hollen Press Trump’s Regulators to Block Predatory Lender from Spreading Nationwide

Warren, Van Hollen Press Trump's Regulators to Block Predatory Lender from Spreading Nationwide

"By approving Enova's application, the OCC and the Board would be providing a 100% APR lender with the green light to run its gambit more widely-veering dramatically from President Trump's nominal support for capping consumer lending expenses."

Text of Letter (PDF)

Washington, D.C. - U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Chris Van Hollen (D-MD) sent a letter to Comptroller Jonathan Gould from the Office of the Comptroller of the Currency (OCC), and Kevin Warsh, Chair of the Board of Governors of the Federal Reserve (Board), raising concerns regarding Enova International's (Enova) application to become a newly formed national bank holding company in light of its history of predatory lending and regulatory noncompliance.

"Though the companies brand themselves as one-stop-shops to rescue consumers during financial pinches, a closer look into their business models reveals persistent, predatory financial strategies. These companies primarily target financially vulnerable consumers with high debt loads and poor credit histories who would struggle to handle additional debt … A closer look at Enova's branded companies reveal financial offerings with Annual Percentage Rates (APRs) upwards of 100% to 300%, and shockingly high charge-off (when a lender determines a debt is unlikely to be collected) rates." wrote the Senators.

"Enova appears to be attempting to expand its predatory lending operations to every state in the country without regard to state licensing and anti-evasion laws by seeking to become a national bank that enjoys the benefits of federal preemption. Specifically, in December 2025, Enova announced its agreement to acquire a bank subsidiary, Grasshopper Bank N.A," wrote the Senators. "Because the acquisition will convert a nonbank, high-cost lender into a national bank holding company, the OCC and the Board are required to approve the acquisition. The role of the Board and the OCC is therefore paramount to ensuring the safety and soundness of the U.S banking system and that the bank's customers enjoy fair access to financial services."

They continued: "Enova's track record of failing to follow the law demonstrates that Enova does not possess the compliance culture necessary to operate as a nationally chartered bank .. [and its] business model does not adequately ensure that borrowers have the ability to repay their loans-a core requirement of safe and responsible lending."

"The approval of its application would also veer dramatically from President Trump's promise to cap credit card interest rates at 10%. We therefore urge the Federal Reserve Board (Board) and the Office of the Comptroller of the Currency (OCC) to deny Enova's application," wrote the Senators.

###

• Print
• Email
• Tweet