Problems at OppFi (OPFI)
OppFi (NYSE: OPFI — $1.04 billion) describes itself as “a leading fintech platform powering credit access for the everyday consumer.” In reality, OppFi is a payday lender with average interest rates of ~129%. Evidence indicates that OppFi has paid for positive online reviews and has delayed the processing of loan repayments, which generates excessive interest. OppFi ignored two letters from the Michigan Attorney General about its delayed payment processing and the CFPB is investigating OppFi’s compliance with the Military Lending Act. In addition, the Washington D.C. Attorney General is suing OppFi and “is asking the court to declare the loans OppFi provided to District residents void and unenforceable, and to order the company to compensate District residents for their payments of unlawful interest.” OppFi’s SPAC sponsors have been involved in stock collapses and accused of self-dealing.
According to the company’s filings, OppFi loans range from 59%—160% interest rates and averaged 12…