SOUTH
BRONX/SDNY, Feb 24 – 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 has 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. This FOIA appeal has
just been filed; the comment period must
be extended: "On behalf of Fair
Finance Watch and Inner City Press and in
my personal capacity, this is an immediate
FOIA appeal of the Board's February 24,
2026 denial of our February 4 FOIA request
the Fed summarized as follows: 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 - and should be release[d] during
the comment period
Troublingly, all eight pages of the Feb 3
AI letter are entirely redacted, as are
all three pages of the January AI letter,
except the request for proof of newspaper
publication. The
context of this FOIA request is a company
charged with predatory lending by the
CFPB, and which was fine for
non-compliance: CFPB, Press Release,
CFPB Fines Repeat Offender Enova $15
Million for Violating Order, Deceiving
Customers, and Withdrawing Funds Without
Consent (Nov. 15,
2023). The public
has a right to know what the FRS is asking
- and not asking - Enova as it tries to
become a bank holding
company. The comment
period, set to expire on February 27
(three days after this total withholding
of even the FRS' questions) must be
extended. To withhold
every single page, while purporting to
have "partially granted" the request, is
ludicrous - and, separately, games the
FRB's annual reporting on its compliance
(or not) with FOIA. This appeal must be
presented directly to the Governors.
Please confirm. Thank you."
Request Submitted Successfully.
See, e.g.,
Sept 10, 2025: https://www.americanbanker.com/opinion/the-fdic-is-undercutting-a-key-element-of-the-cra