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Online Lender Accused of Offering Loans with Interest Rate of 198%

  • District of Columbia AG Karl Racine sued online lender Opportunity Financial, LLC (“OppFi”) over allegations that it used misleading and deceptive marketing to promote its predatory loans to consumers in violation of the District’s Consumer Protection Procedures Act.
  • The complaint alleges, among other things, that OppFi skirted state and local usury laws by partnering with a state-chartered bank in Utah to offer loans that OppFi controlled, with interest rates exceeding the District’s cap of 24% and with some loans carrying a 198% interest rate. In addition, the complaint alleges that OppFi did not disclose all material information about its loans’ costs and risks, and misleadingly marketed the loans as an opportunity to refinance existing loans for better terms.
  • The complaint seeks injunctive and declaratory relief, restitution, civil penalties, and attorneys’ fees.