Predatory Lending’s Prey of Color

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Ramenda Cyrus | The American Prospect
“It meant that the entire industry had to move to a safer product, or bear increased financial risks to their own balance sheets,” said Mitria Spotser of the Center for Responsible Lending (CRL).

Fintechs Fear Contagion of Colorado’s Interest Rate Import Ban

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Evan Weinberger | Bloomberg
Online lenders have used the Avant and Marlette settlements as a model, choosing to get a state license and be supervised by Colorado financial regulators. Those fintechs are considered the “true lender” in a transaction, not their out-of-state bank partners. But the settlements addressed misconduct only after it occurred, said Ellen Harnick, the director of state policy at the Center for Responsible Lending. The Colorado bill that opts out of DIDMCA provisions prevents violations of Colorado interest-rate laws from happening in the first place, she said.

‘It Left Me with Nothing’: The Debt Trap of Payday Loans

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Michael Sainato | The Guardian
“The debt trap is very much by design and it’s how payday lenders’ business model works,” said Yasmin Farahi, deputy director of state policy and senior policy counsel at the Center for Responsible Lending. “They succeed by making sure their customers fail. They target low-income communities and communities of color, and it’s a model that’s based on their customers failing, essentially, for them to stay in business and generate fees.”

When Debt Settlement Leads to Financial Harm

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Rochelle Sparko | AARP
Seventy-five-year-old Army veteran Lester Rodgers, Jr. lives in Chatham County on a fixed income. When his wife passed away, he worried that he would not have enough money to keep his home. Lester saw a TV ad from Themis Law, PLLC, which claimed to be a national law firm located in Washington, D.C. with expertise in saving peoples’ homes. In reality, Themis is a debt settlement company operated by the founder from his home.

House GOP Rebuked for 'Cruel and Reckless' Effort to Reverse Student Debt Relief

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Jessica Corbett | Common Dreams
Another letter signatory, the Center for Responsible Lending (CRL), called out the GOP-led effort just ahead of the vote Wednesday. "This is yet another political stunt from some members of Congress to prevent tens of millions of borrowers, including low-wealth individuals, service members, public service workers, women, and people of color from receiving relief ahead of the Supreme Court's decision regarding the fate of student debt cancellation, said Jaylon Herbin, CRL's director of federal campaigns.

Debt Firm’s Flameout A Cautionary Tale For Consumers

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Daniel Connolly | Law360
Rochelle Sparko is a credit repair expert with the Center for Responsible Lending. She reviewed Litigation Practice Group's website and noticed a blog post that provided a general overview of debt relief programs. It said these programs lead to "ceasing of collection activity." "That's just a lie," Sparko said. "I mean, there is nothing that stops debt collection efforts other than a bankruptcy."

State efforts to regulate earned wage access are heating up

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Miriam Cross | American Banker
Yasmin Farahi, deputy director of state policy at the Center for Responsible Lending, agrees. "A lot of the bills look similar and have been drafted off the same model bill," she said. "It's important that a regulatory regime treats [these services] as loans and there are appropriate consumer protections that go along with other loan products."