Enova Abandons $369 Million Grasshopper Deal Amid Regulatory Uncertainty
Enova International, an online lender serving consumers and small businesses, agreed to buy digital-bank parent Grasshopper Bancorp to gain access to a bank charter and deposit funding. The proposed combination became a test of how US regulators treat nonbank lenders seeking entry into the insured banking system, drawing scrutiny over state interest-rate limits, consumer protection and the absence of clearly defined approval standards.
Enova withdrew its applications from the Federal Reserve and Office of the Comptroller of the Currency on Sept. 14, 2026, ending the $369 million cash-and-stock deal announced in December 2025. Twenty state and District of Columbia attorneys general had urged regulators in July to reject the transaction, alleging it could help Enova sidestep state usury laws. Enova shares tumbled about 25% on Sept. 15 after the withdrawal was disclosed.
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The history behind this eventEnova’s Grasshopper Acquisition Sparks Usury-Regulation Concerns
Enova International owns high-cost lending brands including CashNetUSA and NetCredit. Acquiring Grasshopper Bank’s national bank charter could allow it to expand lending nationwide while claiming that interest-rate rules in the bank’s home state apply. Consumer groups fear this would circumvent state rate caps and could expand the reach of products carrying APRs as high as 99.99% or even 299%.
Enova signed the merger agreement on Dec. 10, 2025, valuing the transaction at about $369 million at signing, with the consideration split roughly equally between cash and stock. Grasshopper shareholders approved the deal on Feb. 2, 2026. The application is under review by the OCC and the Federal Reserve. On June 22, 64 groups called for a public hearing and votes by the full boards, while the company still expects to complete the transaction in the second half of 2026.
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