Give North Carolina’s Community College Students Full Access to Federal Loans

New research report by The Institute for College Access and Success (TICAS) finds that North Carolina is one of three states across the country where community college students are notably shortchanged on federal student loans. The report, States of Denial: Where Community College Students Lack Access to Federal Student Loans, documents substantial disparities in loan access by state, race/ethnicity, and urban/non-urban status during the 2015-16 academic year. Close to half of North Carolina's community college students—53 percent—have no access to these loans. Whitney Barkley, an expert on

Civil Rights, Responsible Lending Advocates Call for Fixes: Payday Rule Should Have No Loopholes, Period

As representatives of consumer, community, religious and civil rights organizations, we applaud the Consumer Financial Protection Bureau (CFPB) for releasing a strong proposed payday and car title lending rule and urge the Bureau to close some concerning loopholes that would allow some lenders to continue making harmful loans with business as usual. At the heart of the CFPB's proposed rule released earlier this month in Kansas City, Missouri, is a common sense principle—that lenders should be required to determine whether or not a consumer has the ability to repay a loan without hardship or re

CFPB Payday/Car-Title Proposal Reduces Debt Trap Lending, But Needs Strengthening

The Consumer Financial Protection Bureau (CFPB) today released proposed rules that, if strengthened, could rein in the worst abuses of payday and car-title lending. As written, however, the rule contains exceptions and loopholes that abusive lenders will use to evade the rule's protections and continue to trap vulnerable borrowers in unaffordable 300-plus percent interest loans. In response to the proposed rule, Mike Calhoun, CRL President, issued the following statement: At the heart of this proposed rule is the reasonable and widely accepted idea that payday and car title loans should be

Broken Banking: Overdraft Penalties Harm Consumers, Discourage Responsible Products

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 on

CFPB Car Title Loan Research Exposes Sky-high Levels of Car Repossessions and Extent of the Debt Trap Business Model

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 research from CRL's State of

Hearing May Serve as Backdrop for New Payday Regulations

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 for

Consumers Lose $8 Billion In Fees Each Year With Payday And Car-title Loans

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

NC’s For-Profit Colleges Burden Rather than Boost Students, Says CRL report

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 their loans

CRL Lauds Google's Payday Ad Change as Corporate Citizenship

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 executive vice

CFPB Forced Arbitration Rule Stands for Accountability, Fairness, and Transparency

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 continuing to increase