Problems at Enova International (ENVA)

Problems at Enova International (ENVA)

Enova International (NYSE: ENVA — $763 million) claims to be a financial tech and analytics company. In reality, Enova is just a modern payday and predatory lender, and the company may struggle under a Biden administration. In addition, complaints pulled from the CFPB seem to indicate Enova is operating illegally even after multiple CFPB fines.

Enova extends consumer loans ranging from $150 to $10,000 under the brands CashNetUSA and NetCredit and charges interest rates as high as 450%. Enova’s loan durations vary from two weeks to five years. Enova also offers high-interest small business loans as large as $200,000 under the brands Headway Capital, The Business Backer, and OnDeck with annual interest rates up to 80%.

Enova has repeatedly found itself on the wrong side of the law, and, in my opinion, will be hurt by increased regulation under the Biden administration.

In 2013, the CFPB fined Enova for “[violating] the Military Lending Act by illegally overcharging servicemembers and th…