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Press Releases

May 24, 2016
Updated estimate finds overdraft fees drain $14 billion from consumers annually, while analysis of complaint narratives finds the deck stacked against consumers. Financial institutions continue to engage in abusive overdraft practices, according to a new analysis by the Center for Responsible Lending (CRL). Each year, consumers pay nearly $14 billion in overdraft fees. If non-sufficient funds are included, the figure climbs to $17 billion. "CRL's analysis confirms that overdraft abuses continue, carrying an enormous annual price tag for consumers as a whole, and with devastating effects...
May 18, 2016
The Consumer Financial Protection Bureau (CFPB) today released a research report on car-title lending that underscores earlier independent findings by the Center for Responsible Lending (CRL). Car title loans are high-cost, high-interest loans secured by the title of a vehicle the borrower owns outright. After analyzing millions of records, CFPB found that: One in five borrowers have their vehicles repossessed; 80% of loans are not retired when due; Two-thirds of all lender volume comes from borrowers stuck in seven or more loans. These findings are consistent with...
May 18, 2016
Damning Report on Car Title Loans, New Figures on Consumer Fee Drain, Heighten Calls for Strong National Rule Earlier today, the Consumer Financial Protection Bureau (CFPB) announced plans for a field hearing that may serve as the backdrop for unveiling a proposed national rule governing a range of abusive small-dollar lending practices. The announcement was made the same day the CFPB issued a report detailing the devastation wrought by one of these practices, car title lending, finding that one in five borrowers has their car seized due to inability to repay – and a day after the Center...
May 17, 2016
New research from the Center for Responsible Lending finds that every year, $8 billion in fees is lost to one of two types of small-dollar, predatory lending: payday and car-title loans. Usually sold to consumers with average incomes of approximately $25,000, these loans may have different names; but both charge triple-digit interest rates that generate the bulk of their debt trap fees. These fees leave most borrowers renewing rather than retiring the loans. The new report is the first update since 2013 that tracks fees charged state-by-state to these two predatory products. These billion-...
May 12, 2016
High costs, low graduation rates, and complaints trigger CRL analysis As higher education costs continue to rise, new research by the Center for Responsible Lending (CRL) analyzes the debts and outcomes resulting from a wide-ranging choice of institutions – both public and private nonprofits and for-profit colleges located in North Carolina. NC Student Loan Calculus found that choices in higher education can either be a boost or a burden to students and their families. "When borrowers who attend public and private colleges leave school," states the report, "they can afford to repay...
May 11, 2016
Google, a leading global search engine, today announced that it would no longer accept advertising for payday loans. Terming the development as an ‘update to its financial services policy', the decision will end many of its prominent online ads. Until now, these ads appeared even in states that have banned payday lending's triple-digit interest rates. Google's action also precedes a long-awaited regulation from the Consumer Financial Protection Bureau (CFPB) as to how small-dollar lending will operate in the marketplace. In response, Keith Corbett, Center for Responsible Lending...
May 5, 2016
Today the Consumer Financial Protection Bureau (CFPB) announced a proposed rule that will limit the financial industry’s use of forced arbitration, a practice used to block consumers from enforcing their legal rights. In response, Mike Calhoun, President of the Center for Responsible Lending (CRL), issued the following statement: This proposed rule is another key development in bringing transparency and fairness to consumer finance. While it does not end all forced arbitration, it does return the opportunity for class actions to be heard and argued in a court of law. By...
May 2, 2016
A new survey finds that Colorado voters strongly oppose the idea of raising interest rates on consumer loans. Opposition was widespread among voters across lines of race, party affiliation, and household income, but the intensity of opposition was especially strong among voters of color and those who had served in the military. Overall, 51% of voters said they would be "much more likely" to vote against a legislator who voted to increase interest rates. That number rose to 58% of military service-members or veterans, and 62% of non-whites. At issue are consumer loans that typically range...
April 20, 2016
Today the Consumer Financial Protection Bureau (CFPB) released a new report that proves how high-cost fees on small-dollar loan create rather than resolve financial challenges for borrowers. An 18-month analysis of loans made by more than 330 payday lenders found that half of all borrowers—nearly 10,000—were charged an average of $185 in bank penalties, hidden costs usually in the form of overdraft or nonsufficient fund fees – or both. Repeated attempts by lenders to collect failed 70 percent of the time, but racked up substantial additional fees nonetheless. Involuntary bank account...
April 14, 2016
Center for Responsible Lending, and Groups Nationwide Tell CFPB: Beware Same Old Predators in Different Clothing The Consumer Financial Protection Bureau’s efforts to rein in the worst abuses of traditional, two-week payday lending schemes must not leave the door open to longer-term loan products that are similarly predatory debt-traps by design, nearly 150 consumer advocacy and civil rights groups representing thousands of Americans in more than 45 states told Consumer Financial Protection Bureau Director Richard Cordray in a hand-delivered letter. At issue is a new rule the CFPB is...

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