Warren, Van Hollen Urge OppFi to Withdraw $130M BNCCORP Acquisition Bid

Sens. Elizabeth Warren, D-MA, and Chris Van Hollen, D-MD, sent a letter Wednesday urging nonbank lender OppFi to withdraw its application to acquire Arizona-based bank holding company BNCCORP and its subsidiary, BNC National Bank. The senators allege OppFi's business model is "built on predatory lending practices," citing personal installment loan APRs as high as 195% and a charge-off rate exceeding 55%. They referenced a 2021 D.C. attorney general lawsuit claiming OppFi's underwriting model anticipates up to one-third of borrowers will default. The letter follows Enova's recent termination of its bid to acquire Grasshopper Bank, which CEO Steve Cunningham attributed to a lack of "clear standards for nonbanks that want to become banks." OppFi did not immediately respond to a request for comment. The OppFi-BNC and Enova-Grasshopper deals drew opposition from 20 state attorneys general in July.