CRL in the News

By the numbers: In a study published this year, the Center for Responsible Lending found the average APR on pay advances repaid in 7 to 14 days was 367% (compared with 400% for a typical payday loan).

A June report from The Center for Responsible Lending — a nonprofit that opposes high-interest lending — found that the average interest rate for Nevada payday loans was 548 percent, the fifth-highest rate in the country.

According to a 2023 report from the Center for Responsible Lending (CRL), 27 states across the country allow payday lending companies to issue single-payment loans with triple-digit interest rates. In recent years, five states have capped these rates, including conservative Nebraska, offering hope that more state legislatures across the country would do the same. But the payday lending industry has...

The Consumer Financial Protection Bureau (CFPB) proposed a rule to curb overdraft fees incurred when consumers withdraw more than the available funds in their bank account — a move that might save customers about $3.5 billion a year overall. It would limit those fees to only what’s necessary to cover the institutions’ costs, which is somewhere between $3 and $14...

Anneliese Lederer, senior policy counsel at the Center for Responsible Lending, said it’s crucial for homeowners considering the UWM loan program to be educated about the terms and conditions. “Using fun lines like ‘no-down payment’ sounds exciting and great. But you need to read the fine print,” Lederer said. “This could be a fantastic product to allow people who can...

“The aspect of this program that makes me nervous is the silent second mortgage,” Anneliese Lederer, senior policy counsel at the nonprofit Center for Responsible Lending, told MarketWatch in an interview. “It’s great that there’s no interest on it, but it’s a balloon payment, and borrowers need to understand what a balloon payment is.”

Many of Buy Now, Pay Later’s repeat customers are financially vulnerable to begin with, says Nadine Chabrier with the Center for Responsible Lending. “Users tend to be younger. They tend to be Black, Latino, consumers of color,” she said. Chabrier said many have lower annual incomes and a high risk of becoming overextended.

The Center for Responsible Lending (CRL) said the ruling was a win for consumers. CRL is the policy arm of the Durham, N.C., nonprofit group operating two credit unions: Self-Help Credit Union ($1.8 billion in assets, 89,114 members as of March 31) and Self-Help Federal Credit Union ($2.1 billion, 100,837 members). CRL lawyer Nadine Chabrier said the ruling "enables the...

The Center for Responsible Lending said the Supreme Court's reversal of the appeals court's decision will enable the federal watchdog agency to continue protecting “American’s wallets from predatory financial firms.” “The Supreme Court’s ruling provided a welcome dose of common sense as it rejected an unprecedented, reckless argument that could have destabilized a housing market that undergirds our economy and...

Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending, said the decision allows the CFPB “to keep doing its job as a watchdog agency that protects Americans’ wallets from predatory financial firms.” “Even with this decision, we must keep fighting to defend our consumer watchdog agency in the courts and in Congress as some industry actors...