California this year sought to banish high-cost lenders. OppLoans was undeterred. A new state law this year capped interest rates — currently at about 37 percent a year — for some consumer loans, the Wall Street Journal reported. But OppLoans is charging 160 percent on a typical loan in California, according to its website, using a partnership with a Utah bank to continue selling in the state despite the new rules. OppLoans isn’t the only lender charging triple-digit rates in California. The Wall Street Journal ran 25 online searches in February within the state for loans for a financially stressed borrower. The top results included several companies pitching consumer loans with rates over 100 percent to borrowers browsing from California. OppLoans and its partner FinWise Bank are in what is called a rent-a-bank partnership, which allows high-cost lenders to skirt interest-rate caps in dozens of states. Rent-a-bank arrangements are the focus of a fierce battle pitting state regulators and consumer advocates against the credit industry.
