High-cost lenders are forming partnerships with banks to skirt interest-rate caps in dozens of states, pitting regulators against the credit industry
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% a year—for some consumer loans. But OppLoans is charging 160% 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.
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