Press Releases

Numbers Confirm Abysmal Outcomes While Focus Groups Reveal the Human Impact of Bad Federal Education Policy; State Action Crucial DURHAM, N.C. – A new Center for Responsible Lending (CRL) research report finds that students who enroll in healthcare support programs at for-profit schools end up carrying much more debt relative to their earnings than do their peers in similar public programs. Tuition and fees for these for-profit programs can exceed $17,000 for an 11-month program, an amount that may seem worth it when the marketing materials of for-profit colleges greatly exaggerate the

WASHINGTON, D.C. – Center for Responsible Lending Executive Vice President Debbie Goldstein released the following the statement after it was reported that Mick Mulvaney, who was unlawfully appointed to head the Consumer Financial Protection Bureau (CFPB), announced his plan to dismantle the membership of the agency's Consumer Advisory Board (CAB). This reckless decision to dismiss the members of the Consumer Advisory Board shows the level of disdain Mick Mulvaney has for consumer protection and it demonstrates his inability to lead both the CFPB and the Office of Management and Budget. The

AB 2500 would have been a historic step forward to help distressed Californians from falling victims to abusive predatory lending SACRAMENTO, CALIF. – Last night, several members of the California Assembly succumbed to industry pressure and voted down AB 2500, the Safe Consumer Lending Act, a bill introduced by Assemblymember Ash Kalra (D-San Jose) to protect California families from abusive high-cost installment loans, including those made by car title lenders. Had it passed, the legislation would have substantially reduced the costs of consumer loans that are between $2,500 to $5,000. AB

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB), which is led by the unlawfully appointed “Acting Director” Mick Mulvaney, joined the leading payday lenders’ association in filing a joint motion to delay the compliance date for the CFPB’s rule on payday loans (PDF) until 445 days from the final judgement of litigation challenging the rule. Center for Responsible Lending (CRL) Director of Federal Policy Scott Astrada issued the following statement: It is appalling that an agency with a primary mission of protecting consumers is now teaming up with a payday lending

Banks and Agency Have Responsibility to Uphold These Principles WASHINGTON, D.C. – Today, the Office of the Comptroller of the Currency (OCC) rolled out guidance addressing installment lending with repayment periods ranging from two to twelve months. The guidance encourages banks to make these loans while cautioning banks to adhere to principles of reasonable pricing and affordability. It also reiterates the agency’s longstanding opposition to “rent-a-charter” arrangements used by high-cost lenders to evade state usury law. The OCC’s enforcement of these principles and responsible practices by

Meanwhile, FDIC today announced that bank profits this quarter were the highest on record WASHINGTON, D.C. – Just now, the U.S. House of Representatives voted in favor of S. 2155, a partial rollback of the Dodd-Frank financial reform law, which, since it has already passed the Senate, sends the bill to the President for his signature. The White House has issued a Statement of Administrative Policy in support of the bill. Center for Responsible Lending (CRL) Senior Legislative Counsel Yana Miles issued the following statement: This bill puts out a welcome mat for many of the same reckless

LOS ANGELES, CALIF. – On Thursday, May 24, 2018, the Stop the Debt Trap Los Angeles, a coalition of consumer and civil rights advocates and faith leaders, will host a press conference in Los Angeles to rally behind the County’s anticipated release of a report that aims to curtail predatory lending. The advocates will also urge Los Angeles Assemblymembers to support AB 2500, the Safe Consumer Lending Act, a bill to put in place a 36% interest rate cap for consumer loans of $2,500 to $5,000, which would help families in Los Angeles from falling into an abusive debt trap. The County Board of

WASHINGTON, D.C. - Congressional Review Act (CRA) resolutions—S.J. Res 56 and H.J. Res 122—to repeal the Consumer Financial Protection Bureau’s (CFPB or consumer bureau) payday and car title lending rule will not advance in Congress, as their legislative clock has expired. The CFPB rule, finalized in October, establishes basic consumer protections on these 300% or more interest loans, including the common sense standard that lenders should have to verify a borrower’s ability to repay before making the loan. Consumer and civil rights advocates are urging the consumer bureau to keep intact the

Overdraft fees cost consumers $14 billion a year WASHINGTON, D.C. – Mick Mulvaney, who is unlawfully leading the Consumer Financial Protection Bureau (CFPB or the consumer bureau), recently announced that the agency will halt its rulemaking plan to address bank overdraft fee abuses. The announcement was made along with the agency’s updated spring agenda, which dropped an overdraft fee rule from the list of upcoming actions. Since February 2012, under the previous CFPB Director, the consumer bureau has studied abusive overdraft fee practices and the results have been clear: overdraft programs

SB 818 would renew mortgage and foreclosure safeguards, such as the right to appeal when a loan modification application is denied. SACRAMENTO, CALIF. – Today, the California Senate passed SB 818, a bill to restore key provisions in California’s landmark “Homeowner’s Bill of Rights” (HBOR) legislation which passed in 2012 in response to the foreclosure crisis. HBOR has prevented thousands of avoidable foreclosures by requiring mortgage loan servicers to engage in timely, fair and transparent process with struggling homeowners before proceeding to foreclosure. The bill’s sponsor is Senator Jim