CRL in the News

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 sue and lobby to preserve illegal financial discrimination, billions in unlawful junk fees, and other exploitative behavior,” Chabrier said.

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 immensely popular Consumer Financial Protection Bureau to keep doing its job as a watchdog agency that protects Americans' wallets from predatory financial firms." "The Supreme Court's ruling provided a welcome dose of common

Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending, also cheered the ruling as a "welcome dose of common sense."

Critics also say the costs of the loans are not always transparent. Many charge monthly subscription fees and most charge mandatory fees for instant transfers of funds, though there is typically a no-cost option to receive funds in one to three business days. The average APR for a loan repaid in seven to 14 days was 367%, a rate comparable to payday lending, according to a report from the Center for Responsible Lending.

Some lenders have used concerning tactics in Colorado, and it’s just not right. A 2022 report by the Center for Responsible Lending found several instances of Colorado consumers purchasing multiple insurance policies when borrowing. In one egregious example, Lendmark, a consumer lending company, added $5,000 of insurance premiums to a $10,000 loan. Had the lender included the cost of those premiums in the APR, it would have more than doubled to 47%, which exceeds Colorado’s legal interest rate limits on consumer loans.

Critics also say the costs of the loans are not always transparent. Many charge monthly subscription fees and most charge mandatory fees for instant transfers of funds, though there is typically a no-cost option to receive funds in one to three business days. The average APR for a loan repaid in seven to 14 days was 367%, a rate comparable to payday lending, according to a report from the Center for Responsible Lending.

In a Nutshell: Earned wage access and cash advance loans appeal to workers who need financial flexibility to tide them over until their next paycheck. According to a recent Center for Responsible Lending analysis, these small-dollar, short-term loans carry costs and risks similar to payday lending products, including high interest, fees, and account overdrafts. The Center for Responsible Lending is a research and advocacy nonprofit dedicated to creating a fairer financial marketplace with opportunities for all families and individuals. This study reveals the expensive and counterproductive

In the latest episode of The Connector, The Collaborative Executive Director Marquita Robertson and Center for Responsible Lending Director of NC Policy Rochelle Sparko speak with Institute for Emerging Issues Communications Director Jennifer Heiss about what it means to be unbanked, and steps those who are unbanked can take to protect their money and get set up with FDIC insured bank accounts.

In response to the V.A. Wednesday’s announcement, the National Consumer Law Center (NCLC) and the Center for Responsible Lending (CRL) asked the V.A. to extend the foreclosure pause, which is set to expire on May 31, until the VASP program is widely available.

“We commend the Biden-Harris administration for its continued efforts to make student loan repayment fairer for consumers,” said Nadine Chabrier, senior policy and litigation counsel at the Durham-based Center for Responsible Lending. “Congress never required the Department of Education to capitalize most interest on these loans; so, it’s well past time to make things right for the millions of affected borrowers.”