SOUTH
BRONX/SDNY, June 1 – 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.
Inner City
Press requested documents including the
Federal Reserve's communications with
Enova, under the Freedom of
Information Act. The Fed denied
the request, then on Inner City
Press' appeal provided
entirely redacted pages and a denial, which said if
you don't agree, you
can sue.
Inner
City Press has now
filed a FOIA
lawsuit against
the Fed for its
communications
with Enova - copy
of complaint,
which went live
on PACER on June
1, on now on
CourtListener,
here.
The Fed
has 30 days to
answer.
Back in
January 2026 Fair Finance Watch filed with
the Fed and OCC:
"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?" Now, the lawsuit, here.
See, e.g.,
Sept 10, 2025: https://www.americanbanker.com/opinion/the-fdic-is-undercutting-a-key-element-of-the-cra
