SOUTH
BRONX/SDNY, April 10 – Amid
the FDIC's bid to eliminate public notice
of and public comment on branch
applications, the Federal Reserve and OCC
are entertaining applications by Enova,
the parent of high cost lender CashNetUSA,
to acquire Grasshopper Bank, already
deeply engaged in AI banking.
Fair
Finance Watch filed, in January 2026:
"opposition to the applications of Enova, parent of the high-cost payday lender CashNetUSA, to become a national by seeking to acquire Grasshopper Bank. To allow a payday lender already fined by the CFPB to become a bank would be a new low. See, CFPB, Press Release, CFPB Fines Repeat Offender Enova $15 Million for Violating Order, Deceiving Customers, and Withdrawing Funds Without Consent (Nov. 15, 2023).
The
Federal Reserve Bank of Chicago confirmed
receipt and and sent FFW its Additional
Information letter - with each and every
question withheld. So this FOIA has been
filed:
"This is
an immediate FOIA request for the AI
letter the FRB of Chicago sent to Enova,
owner of payday lender CashNetUSA, on its
application to acquire Grasshopper
Bank. All of the AI question have
been withheld...the entirety of this AI
letter should not have been withheld
during the comment period. Here, the
Enova AI must released during the comment
period, or the comment period extended."
On
February 13, still without documents,
Enova wrote it bragging that "Enova
fulfilled its obligations under the CFPB
consent orders referenced in Fair Finance
Watch’s letter. Enova paid civil money
penalties, provided for customer
remediation, and enhanced controls as
required by the orders. As a result, the
CFPB terminated the consent orders
pursuant to its authority under 12 U.S.C.
§ 5563(b)(3).2- in July 2025 - See
Enova's response on Inner City Press'
DocumentCloud
here
The Fed on February 24 responded to the FOIA request - by withholding all substantive information. Determination letter here; entirely redacted pages from the Fed here. FFW commented a second time, after filing a FOIA appeal:
"To allow
a payday lender already fined by the CFPB
to become a bank holding company would be
a new low for the Fed. This, too - the
total withholding of all of the Fed's
questions to Enova. FOIA appeal has just
been filed; the comment period must be
extended."
On
April 10 the Fed denied the FOIA appeal,
in full. Not a single word released.
Tweeted photo here,
along with the words "Sue? Pro bono,
anyone?" Watch this site.
See, e.g.,
Sept 10, 2025: https://www.americanbanker.com/opinion/the-fdic-is-undercutting-a-key-element-of-the-cra
