FinWise Bank

The California Department of Financial Protection and Innovation (DFPI) initially threatened enforcement against loans originated by FinWise Bank through its fintech partner OppFi under California's Fair Access to Credit Act (AB 539). In April 2022, the DFPI escalated by filing a cross-complaint alleging violations of California's Financing Law and Consumer Financial Protection Law, asserting that OppFi was the 'true lender' and therefore subject to the state's 36% interest rate cap. The case represented a direct challenge to the bank-fintech partnership lending model, where a state-chartered or federally-chartered bank originates loans that a fintech partner subsequently services or purchases. On February 24, 2026, a Los Angeles County Superior Court granted summary judgment in favor of OppFi, rejecting the DFPI's true lender theory. This ruling is significant for the BaaS and bank-fintech partnership ecosystem as it upheld the validity of the bank-as-originator model against state regulatory challenge. The decision may influence other states' approaches to similar true lender arguments.

Verified from source: In April 2022, DFPI filed a cross-complaint alleging OppFi was the 'true lender' of loans originated by FinWise Bank, violating California's 36% interest rate cap under AB 539. On February 24, 2026, the Los Angeles County Superior Court granted summary judgment in favor of OppFi, rejecting the DFPI's true lender theory.