U.S. Sens. Elizabeth Warren (D-MA) and Chris Van Hollen (D-MD) urged members of President Donald Trump’s administration to block Enova International’s application to become a national bank holding company.
Citing the fintech company’s history of predatory lending and regulatory noncompliance, Warren, the ranking member of the Senate Banking, Housing and Urban Affairs Committee, and Van Hollen requested in a letter to Comptroller Jonathan Gould from the Office of the Comptroller of the Currency (OCC), and Kevin Warsh, Chair of the Board of Governors of the Federal Reserve (Board) not to approve the bank’s application.
“Enova appears to be attempting to expand its predatory lending operations to every state in the country without regard to state licensing and anti-evasion laws by seeking to become a national bank that enjoys the benefits of federal preemption. Specifically, in December 2025, Enova announced its agreement to acquire a bank subsidiary, Grasshopper Bank N.A,” the Senators wrote. “Because the acquisition will convert a nonbank, high-cost lender into a national bank holding company, the OCC and the Board are required to approve the acquisition. The role of the Board and the OCC is therefore paramount to ensuring the safety and soundness of the U.S banking system and that the bank’s customers enjoy fair access to financial services.”
The senators said approving the application would allow the company to expand nationwide, and take its predatory practices with it.
“Though the companies brand themselves as one-stop-shops to rescue consumers during financial pinches, a closer look into their business models reveals persistent, predatory financial strategies. These companies primarily target financially vulnerable consumers with high debt loads and poor credit histories who would struggle to handle additional debt … A closer look at Enova’s branded companies reveal financial offerings with Annual Percentage Rates (APRs) upwards of 100% to 300%, and shockingly high charge-off (when a lender determines a debt is unlikely to be collected) rates,” the Senators wrote.
Additionally, were the regulators to approve the application, it would appear to fly in the face of the President’s previous promises to cap interest rates.
“The approval of its application would also veer dramatically from President Trump’s promise to cap credit card interest rates at 10 percent,” the Senators wrote. “We therefore urge the Federal Reserve Board and the Office of the Comptroller of the Currency to deny Enova’s application.”