California Court Issues Final Statement of Decision Rejecting DFPI “True Lender” Theory Against OppFi

May 30, 2026 - 03:13

The Los Angeles County Superior Court issued its final Statement of Decision on May 19, 2026, firmly rejecting the California Department of Financial Protection and Innovation's attempt to label OppFi as the "true lender" behind loans made by its bank partner. The ruling marks a definitive end to a legal battle that has been closely watched by the fintech industry.

The court's decision upholds the validity of the bank-fintech partnership model, where a state-chartered bank originates loans and a technology company provides services. The DFPI had argued that OppFi, rather than the bank, was the real lender, which would subject the loans to California's strict interest rate caps. The court disagreed, finding that the bank was the true lender and that OppFi's role did not change that legal reality.

This final statement solidifies a preliminary ruling from earlier this year. Industry observers say the decision provides much-needed legal clarity for companies that rely on partnerships to offer credit products. OppFi hailed the outcome as a validation of its business model and a win for consumers who rely on its lending platform. The DFPI has not indicated whether it will appeal.