At the heart of our economic justice work is a simple goal: protecting San Franciscans from predatory financial products. That is why Treasurer José Cisneros officially called on the Federal Reserve to block Enova International’s bid to buy Grasshopper Bank.
Enova is one of the highest-cost lenders in the nation, with interest rates climbing as high as 300% APR. Worse, they’ve already made it clear they plan to bring those high-cost products to the bank they want to buy.
If approved, Enova could use a national bank charter to bypass state laws like California’s Fair Access to Credit Act, which caps non-bank loan rates at 36%. This loophole would allow them to export triple-digit interest loans across the entire country.
This kind of lending falls hardest on the families who can least afford it. In 2024, California payday borrowers were hit with $246 million in fees, averaging 364% APR. Most of that money came from people trapped in a cycle of repeat borrowing. Let's be clear: triple-digit interest isn't helping people get credit. It’s a debt trap that strips wealth away from working families.
To protect consumers, the Treasurer urged the Board of Governors of the Federal Reserve to deny the application and hold a public hearing to give communities a voice. Read the full comment letter below:
