We live in a world where corporate accountability often takes a backseat to profit maximization, this case of the ironically named Opportunity Financial, LLC (OppFi) serves as a glaring example of corporate greed and systemic exploitation.
The class-action lawsuit filed against OppFi in Illinois exposes the company’s harmful lending practices, which allegedly violate state usury laws and federal statutes.
By charging exorbitant interest rates on loans to financially distressed individuals, OppFi exemplifies the dangers of unchecked corporate power, neoliberal capitalism, and the erosion of consumer protections.
This article will explore the extensive harms caused by OppFi’s predatory practices, emphasizing the need for systemic reform and greater corporate accountability.
Predatory Lending Is A Mechanism for Exploitation
At the core of the allegations against OppFi is its use of predatory lending practices that target vulnerable consumers. According to the lawsuit, OppFi issued loans with interest rates as high as 159.56%—a blatant violation of Illinois’ Predatory Loan Prevention Act (PLPA), which caps annual interest rates at 36%.
These loans were marketed as solutions for financial emergencies but instead trapped borrowers in cycles of unmanageable debt.
OppFi’s business model relies on exploiting individuals who are already struggling to make ends meet. For example, Corey Fratus, the plaintiff in this case, took out a $4,000 loan from OppFi to cover household bills after unexpected medical expenses.
Instead of receiving relief, Fratus was burdened with an astronomical interest rate that further destabilized his financial situation. This is not an isolated incident but part of a broader pattern in which corporations prey on those with limited access to traditional credit options.
The Role of Neoliberal Capitalism in Enabling Corporate Misconduct
OppFi’s actions cannot be understood in isolation; they are symptomatic of a larger system shaped by neoliberal capitalism. This economic framework prioritizes deregulation, privatization, and market-driven solutions while neglecting social welfare and consumer protections.
Under neoliberal policies, corporations like OppFi have been able to exploit regulatory loopholes to maximize profits at the expense of public well-being.
For instance, OppFi used a “bank partner model” to circumvent Illinois’ interest rate cap by partnering with out-of-state banks operating under federal law.
This arrangement allowed OppFi to issue loans at predatory rates while claiming immunity from state regulations.
Such tactics are emblematic of neoliberal capitalism’s failure to hold corporations accountable for their actions. By prioritizing shareholder profits over ethical considerations, neoliberalism creates an environment where exploitation becomes normalized.
The Ripple Effects of Predatory Lending
The economic consequences of OppFi’s lending practices extend far beyond individual borrowers. When consumers are forced to divert their limited resources toward exorbitant loan payments, local economies suffer. Small businesses lose customers who can no longer afford discretionary spending, while housing markets face increased instability as more people fall behind on rent or mortgage payments.
Moreover, predatory lending exacerbates wealth disparity by transferring money from low-income communities to wealthy corporate executives and shareholders.
According to OppFi’s own financial disclosures, the company had $457 million in receivables outstanding at the end of 2022. A significant portion of this revenue likely came from high-interest loans issued to financially distressed individuals.
This dynamic not only perpetuates economic inequality but also undermines efforts to build a fairer and more inclusive economy.
A Systemic Failure of Corporate Accountability
Despite clear evidence of harm, corporations like OppFi often evade meaningful accountability due to systemic flaws in our legal and regulatory frameworks.
The lawsuit against OppFi alleges violations not only of Illinois’ PLPA but also federal statutes such as the Racketeer Influenced and Corrupt Organizations Act (RICO). However, even if OppFi is found liable, the penalties imposed may be insufficient to deter future misconduct.
One reason for this lack of accountability is the immense political and economic power wielded by corporations.
Through lobbying and campaign contributions, companies like OppFi can influence lawmakers and regulators to weaken consumer protections. Additionally, they employ armies of lawyers to delay or derail legal proceedings, effectively making justice inaccessible for ordinary citizens.
Faces Behind The Statistics
While statistics can illustrate the scale of harm caused by predatory lending, they often fail to capture its human cost.
Corey Fratus’ story is just one example among thousands of borrowers who have been exploited by OppFi’s practices. These individuals face not only financial hardship but also emotional stress and a loss of dignity as they struggle to repay loans with exorbitant interest rates.
The human cost extends beyond borrowers themselves; it affects entire families and communities. Children may suffer when parents are forced to cut back on essential expenses like food or education. Elderly family members may go without necessary medical care because their caregivers are trapped in cycles of debt. These stories underscore the urgent need for systemic change to protect consumers from corporate exploitation.
The Illusion of Corporate Social Responsibility
Like many corporations accused of unethical behavior, OppFi likely portrays itself as a champion of financial inclusion and empowerment. However, such claims ring hollow in light of the company’s predatory practices. Corporate social responsibility (CSR) initiatives often serve as little more than public relations tools designed to deflect criticism and enhance brand image.
True corporate accountability requires more than hollow promises or philanthropic gestures; it demands structural changes that prioritize public welfare over private profit. This includes stronger regulations, greater transparency, and mechanisms for holding executives personally accountable for their companies’ actions.
Recommendations for Reform
Addressing the harms caused by OppFi and similar corporations requires a comprehensive approach that includes:
- Stronger Consumer Protections: Governments must close legal loopholes that enable predatory lending and enforce existing laws more rigorously.
- Enhanced Transparency: Corporations should be required to disclose detailed information about their lending practices and interest rates.
- Collective Action: Grassroots movements can amplify consumer voices and pressure policymakers to prioritize public welfare over corporate interests.
- Corporate Governance Reform: Shareholders must demand ethical practices from companies they invest in or risk being complicit in their misconduct.
- Personal Accountability: Executives who knowingly engage in illegal or unethical practices should face criminal penalties.
The Urgent Need for Corporate Accountability
The case against Opportunity Financial, LLC serves as yet another reminder of the dangers posed by unchecked corporate greed.
It highlights how neoliberal capitalism enables exploitation while failing to provide adequate safeguards for vulnerable populations. Most importantly, it underscores the urgent need for systemic reform to create an economy that values people over profits.
As consumers, advocates, and citizens, we must demand better from our institutions—both public and private.
We must hold corporations accountable for their actions while working toward a future where economic justice is not an aspiration but a reality.
Only then can we begin to dismantle the structures that perpetuate inequality and build a society rooted in fairness, compassion, and shared prosperity.
By addressing these issues head-on through stronger regulations and collective action, we can ensure that companies like OppFi are held accountable for their harmful practices—and that no one else falls victim to their exploitation again.
OppFi website: https://www.oppfi.com