CRL in the News

The Center for Responsible Lending and various other nonprofit groups had urged DeSantis, who is running for the Republican presidential nomination in 2024, to veto the bill. "We do not doubt that lenders will flock to Florida if you sign this bill into law since there are few states that allow lenders to charge borrowers 36% interest for loans up...

“We want to make sure that communities of color understand the importance of canceling student loan debt — how it will impact them directly,” said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending. Canceling student debt will open the doors for many students of color, including those who are first-generation college students. “We know that those...

“A person doesn’t necessarily go into a loan product assuming that they’re going to be harmed, and I think that is the general business model of this type of product,” said Charla Rios, acting director of research for the Center for Responsible Lending and author of the report. “They know that once a person comes in seeking funds, they’re under...

One joint brief includes Self Help Federal Credit Union and its state-charted sister, Self Help Credit Union, both community development credit unions based in Durham, N.C. It also includes its policy affiliate, The Center for Responsible Lending, also based in Durham. “The CFPB’s funding structure is constitutional and critical to ensuring that it can carry out its consumer protection mission...

Some states, particularly Utah, have relatively loose limits on the interest rates that banks chartered within their borders can charge. Those banks sometimes work with high-cost lenders to offer loans with rates above what Colorado and other stricter states would otherwise allow — an arrangement that consumers advocate deride as the "rent-a-bank" model. That approach is "saddling working families with...

Knowledge is power, and this is especially true when it comes to financial literacy. Gimmicks like “skeptical payday loans” and “E-Z Credit” companies’ prey on this lack of information while taking their toll on families and many in urban neighborhoods. As a matter of fact, according to the Center for Responsible Lending, these companies are heavily concentrated in Black and...

Minnesota's law is not a flat out 36% rate cap, but by putting strict limits on payday loans with rates between 36% and 50%, it could drastically reduce the product's availability. The law will "disrupt the predatory business model" of payday lenders so that they stop "creating long-term debt traps for consumers," said Yasmin Farahi, deputy director of state policy...

These apps make money in a variety of ways, including subscription fees, fees to speed the arrival of your money and tips. “They’re basically just making payday loans,” said Andrew Kushner, policy counsel at the Center for Responsible Lending, of the direct-to-consumer companies. “This is what payday lenders do.”

“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).

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...