Credit Issues After Transgender and Nonbinary Individuals File a Legal Name Change

Today, 145 organizations sent a letter to the “Big Three” credit bureaus (Equifax, Experian, and Transunion) and to the Consumer Data Industry Association (CDIA), the trade association that represents them, urging them to take needed actions to correct credit report problems for transgender and nonbinary consumers. The signatory organizations include LGBTQI+ advocacy organizations, community centers, chambers of commerce, businesses, and community groups, as well as consumer, employment, housing, and anti-poverty organizations. The letter responds to the CDIA’s February 2 announcement, “

Coalition Calls on SBA and Congress to Treat Microbusinesses Fairly in Forgiveness Process

Washington, D.C. – The Center for Responsible Lending (CRL) and a coalition of 51 small business advocates submitted a letter to Congress today calling for fair treatment for microbusinesses seeking forgiveness of Paycheck Protection Program (PPP) loans. The letter states that more than 400,000 microbusinesses that received PPP loans of $25,000 or less in 2020 are being required to repay all or a portion of this emergency relief. The letter applauds Congress and the Small Business Administration’s (SBA) swift action in implementing PPP loans to address urgent needs as the pandemic and ensuing

Poll Finds Broad, Bipartisan Support for Lowering Payday Loan Interest Rates From 260% to 36% in Rhode Island

RI Senators Introduced Effective 36% Rate Cap Bill Last Week PROVIDENCE, R.I.— After State Senator Ana Quezada and cosponsors introduced S2166 last week, a bill that would cap payday loans at 36% annually by repealing authorization for their triple-digit annual interest rates, the Center for Responsible Lending, The Economic Progress Institute and Capital Good Fund released a poll showing broad support for such a measure. Rhode Islanders are eager to limit the interest rate payday lenders can charge on loans that typically trap borrowers in long-term cycles of debt, according to the poll

Predatory Loans for Puppies Must be Stopped, Say Consumer and Animal Welfare Advocates

TAB Bank is helping EasyPay Finance evade state laws that prohibit 189% APR loans WASHINGTON – In advance of National Love Your Pet Day on February 20, the Center for Responsible Lending, along with its Stop the Debt Trap coalition partners, is teaming up with animal welfare advocates to launch a campaign to stop TAB Bank from making predatory puppy loans, many of which go to buy puppies from puppy mills. At pet stores across the country, Transportation Alliance Bank (TAB Bank) is helping predatory lender EasyPay Finance evade state interest rate laws and make pet loans at 130% to 189% APR

The System is Broken: 100+ Organizations Urge Biden Administration to Aid Millions of Student Loan Borrowers with Overdue Income-Driven Repayment (IDR) Reforms

IDR program has failed borrowers for decades, organizations contend, calling on the Education Secretary to fulfill broken promises WASHINGTON, D.C. — Today, a group of 104 diverse advocacy organizations, including American Federation of Teachers (AFT), National Education Association (NEA), and UnidosUS, sent a letter to the Biden administration, calling on U.S. Secretary of Education Miguel Cardona to reform broken, dysfunctional income-driven repayment (IDR) programs with the creation of an IDR restoration project or waiver. While student loan cancellation under IDR has been possible since

Chase’s Predatory Robo-Signing Practices Threaten Financial Security of Its Customers

Washington D.C.— Lucia Mattox, the director of western states outreach and senior policy associate at the Center for Responsible Lending (CRL) made the following statement in response to recent reports that JPMorgan Chase, the nation’s largest bank with over $3.2 trillion in assets, has renewed a predatory practice called “robo-signing,” which occurs when companies filing lawsuits against consumers sign and churn out affidavits without verifying the validity of debts or pertinent documents: Even as they continue to struggle with the impact of the COVID19 pandemic, tens of thousands of American

Advocates Call for FDIC, under New Leadership, to Stop Banks from Fronting for Predatory Lenders

Today’s departure of FDIC Chair appointed by former President Trump presents a new opportunity for the agency to stop illegal loans with 100%+ APR that are exploiting financially vulnerable families WASHINGTON, D.C. – With a new chairman taking the helm of the Federal Deposit Insurance Corporation (FDIC), the Center for Responsible Lending joined with more than a dozen other organizations in calling for the FDIC to “stop permitting its supervised institutions to front for predatory lenders evading state interest rate limits.” The letter, linked here, is addressed to the FDIC’s Board of

Navient Reaches $1.85 Billion Settlement for Defrauding Millions of Students

Washington, DC – Today, Navient, one of the largest student loan servicers in the country, reached a $1.85 billion settlement with 39 states over predatory student loan practices. In response, the Center for Responsible Lending (CRL) and the National Consumer Law Center (NCLC) released the following statement: Navient’s history of steering borrowers into high-cost, long-term forbearances instead of placing them in affordable income-driven repayment (IDR) plans harmed millions of borrowers nationwide—many of whom were borrowers of color and low-income students. This settlement requires Navient

Borrower Advocates Demand that Education Department Restore the Promise of Income-Driven Repayment

Advocates Outline Path for the Biden Administration to “Do its Part” in Fixing IDR Washington, DC -Today, the Center for Responsible Lending, Student Borrower Protection Center, and National Consumer Law Center released a whitepaper outlining why the U.S. Department of Education (ED) must act now, before the payment pause ends, to provide relief for the millions of federal student loan borrowers who have never seen the promise of income-driven repayment (IDR) forgiveness. This report outlines how the Biden administration can cut through the red tape that has long stymied the IDR program and

CRL Praises Bank of America for Reducing Overdraft Fee

WASHINGTON, DC – Bank of America, America’s second-largest retail bank with about $2.35 trillion in assets, today announced it will reduce overdraft fees and non-sufficient funds (NSF) fees (aka bounced check fees) for its consumer banking customers. Center for Responsible Lending (CRL) President Mike Calhoun issued the following statement: Bank of America’s decision will provide much-needed relief for customers who least can afford the burden of overdraft fees and should lead other financial institutions to drop these fees that disproportionately impact low-income, Black and Latino Americans