Fintech Lender Sues Calif. Regulator Over 36% Rate Cap Law

By Jon Hill (March 10, 2022, 9:41 PM EST) -- Fintech lender Opportunity Financial LLC has asked a California state court to block the state's financial services regulator from enforcing a 36% interest rate cap against the company's branded loans, which it says are exempt from a recent law because they're originated through an out-of-state bank partner.

In a complaint filed Monday in Los Angeles County Superior Court, the Chicago-based lender said California's commissioner of financial protection, Clothilde V. Hewlett, had unlawfully threatened to go after the company for making loans to California consumers at rates that exceed the maximums set by state law A.B. 539.

The law, which took effect...

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