Warren, Van Hollen Tell Regulators to Nix Enova’s Bank Purchase

Federal banking regulators should reject Enova International Inc.'s bid to buy a national bank because it would allow the online lender to issue high-cost loans in states with interest rate caps, Democratic senators said.

Enova’s $369 million deal to purchase Grasshopper Bank N.A. would let the fintech issue loans across the country with interest rates as high as 300% because Grasshopper has a national charter from the Office of the Comptroller of the Currency, Sens. Elizabeth Warren (D-Mass.) and Chris Van Hollen (D-Md.) said in a Wednesday letter to regulators shared exclusively with Bloomberg Law.

Warren is the top Democrat ...