Credit Card Reform Works, Fosters Pricing Clarity, Competition

New credit card rules mandated by the Credit CARD Act of 2009 have resulted in significantly greater price transparency for consumers, a new research report by the Center for Responsible Lending finds. The report, "Credit Card Clarity: CARD Act Reform Works," also finds that—contrary to industry claims—the price consumers pay for credit cards has remained stable and access to credit...

Administration’s Housing Plan Leaves Taxpayers and the Economy at Risk

Related: Wall Street, Not Fannie Mae and Freddie Mac, Led the Toxic Market While Fannie Mae and Freddie Mac need serious reform, we must get these reforms right. Among the Administration's several proposals, only one—the one that maintains a limited role for the GSEs—even has potential for ensuring all families have access to home loans and achieving stability in the...

Financial Crisis Inquiry Report: Crisis was Avoidable

The Financial Crisis Inquiry report rejects the notion that the financial crisis was inevitable. Instead, based on extensive evidence and 19 days of public hearings, the report points squarely at preventable actions and inactions by the "captains of finance and the public stewards of our financial system." Aided by oversight that was weak and permissive, the reckless practices of Wall...

Federal Reserve Should Withdraw Proposals that Enable Loan Scams on Senior Citizens

Washington, D.C.--- Proposed changes to home lending rules from the Federal Reserve Board not only exceed its authority, but could actually encourage predatory lending targeted at the elderly. In response to the flawed proposals, the Center for Responsible Lending, the National Consumer Law Center (on behalf of its low-income clients), the National Association of Consumer Advocates, the California Reinvestment Coalition...

DOJ Lending Case Highlights Abuses on FHA Mortgages

The Department of Justice $2 million settlement with PrimeLending spotlights serious problems on loans insured by the Federal Housing Administration (FHA). The case found inconsistent and abusive pricing on loans to African-American borrowers, revealing that it's far too easy for lenders making government-backed loans to overcharge home buyers. (For the DOJ announcement, go to http://bit.ly/gINlMk.) The FHA insures mortgages that...

Other Federal Bank Regulators Should Follow the FDIC’s Leadership in Curbing Overdraft Fee Abuses

Statement by CRL President Mike Calhoun: "Today the Federal Deposit Insurance Corp. set a standard other regulators should follow when it issued guidelines advising banks to stop reordering transactions to maximize overdraft fees, particularly on debit cards. Unfair transaction posting—especially the practice of reordering checks and debit card transactions to deduct the largest checks and charges first—significantly increases the number...

Montana Voters Reject Payday Loan Abuses

Montana yesterday became the third state in two years to reject payday loans carrying triple-digit interest rates. Citizens in the state overwhelmingly approved a ballot initiative to limit annual interest rates on small consumer loans to 36 percent. With nearly all precincts counted, 72 percent of voters backed the measure, thus rejecting industry arguments intended to conceal that payday lenders'...

Credit Card Offers Are Needlessly Confusing; New Law Brings Some Improvement

Credit card offers have grown increasingly complicated since 2000, when Congress required issuers to start disclosing pricing information on credit card offers. But instead of providing clarity to consumers about the true cost of their credit cards, issuers responded to this mandate by adding a confusing array of numbers to their offers, new CRL research finds. To see the full...

Do Consumers Really Want High-Cost Bank Overdraft Fees on Debit Cards?

The American Bankers Association and industry consultants claim surveys show customers have "opted in" to high-fee debit card overdraft coverage because they want this service. But these surveys likely only show the success of aggressive, deceptive marketing campaigns to steer customers into bad products, not true customer preference. Industry-sponsored survey results would be more credible if banks and credit unions...

Joint Letter Urging OCC to Curb Overdraft Abuse

The Honorable John Walsh Acting Comptroller Office of the Comptroller of the Currency 250 E Street, SW Washington, DC 20219-001 Dear Acting Comptroller Walsh: As banks continue their campaigns to persuade consumers to agree to pay steep fees for debit card overdrafts, we urge the Office of Comptroller of the Currency to adopt stricter guidance that effectively requires banks to...