Predatory Lending’s Prey of Color
“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).
Minnesota caps rates on payday loans — with a wrinkle
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...
The new payday loans? California moves to regulate cash advance apps
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.”
Fintechs Fear Contagion of Colorado’s Interest Rate Import Ban
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...
‘It Left Me with Nothing’: The Debt Trap of Payday Loans
“The debt trap is very much by design and it’s how payday lenders’ business model works,” said Yasmin Farahi, deputy director of state policy and senior policy counsel at the Center for Responsible Lending. “They succeed by making sure their customers fail. They target low-income communities and communities of color, and it’s a model that’s based on their customers failing...
Bill introduced that would limit Delaware payday loans to a 20% interest rate
Interest rates on payday loans can run into the hundreds of percentage points. The Center for Responsible Lending reported Delaware’s rate runs nearly 400%
When Debt Settlement Leads to Financial Harm
Seventy-five-year-old Army veteran Lester Rodgers, Jr. lives in Chatham County on a fixed income. When his wife passed away, he worried that he would not have enough money to keep his home. Lester saw a TV ad from Themis Law, PLLC, which claimed to be a national law firm located in Washington, D.C. with expertise in saving peoples’ homes. In...
Will California crack down on cash apps that trap women in debt?
“People are struggling,” said Andrew Kushner, senior policy counsel for the Center for Responsible Lending, an advocacy group. “If you get money this week, that’s less money to pay your expenses next week and you’re even worse off because of the fee.”
House GOP Rebuked for 'Cruel and Reckless' Effort to Reverse Student Debt Relief
Another letter signatory, the Center for Responsible Lending (CRL), called out the GOP-led effort just ahead of the vote Wednesday. "This is yet another political stunt from some members of Congress to prevent tens of millions of borrowers, including low-wealth individuals, service members, public service workers, women, and people of color from receiving relief ahead of the Supreme Court's decision...
Debt Firm’s Flameout A Cautionary Tale For Consumers
Rochelle Sparko is a credit repair expert with the Center for Responsible Lending. She reviewed Litigation Practice Group's website and noticed a blog post that provided a general overview of debt relief programs. It said these programs lead to "ceasing of collection activity." "That's just a lie," Sparko said. "I mean, there is nothing that stops debt collection efforts other...