Press Releases

WASHINGTON, D.C. – The U.S. Supreme Court just announced that the secure, independent funding structure of the Consumer Financial Protection Bureau is constitutionally sound, thereby averting the economic and political chaos that an adverse ruling likely would have caused. The case, Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association of America, Limited (CFSA), was originally brought by CFSA...

WASHINGTON, DC – Richard Cordray, the chief operating officer of the U.S. Department of Education’s Federal Student Aid office, announced late last week that he was resigning from the agency. He is expected to formally leave his post at the end of June. Michael Calhoun, president of the Center for Responsible Lending, issued the following statement: Richard Cordray’s leadership was...

WASHINGTON, DC -- Ginnie Mae president Alanna McCargo announced late last week that she was resigning from the agency effective May 3. Michael Calhoun, president of the Center for Responsible Lending, issued the following statement: Alanna McCargo was an advocate for sustainable, equitable and affordable housing, and she ensured that Ginnie Mae remained focused on its mission to increase access...

Groups say bills before House committee hide true cost of cash advance apps, erase consumer protections WASHINGTON, D.C. – The U.S. House of Representatives Financial Services Committee will vote tomorrow morning on several pieces of legislation that could harm consumers. The Center for Responsible Lending (CRL) joined dozens of advocacy organizations in letters opposing two of these bills: the “Earned...

Washington, D.C., — The Biden administration announced today its first set of draft rules proposing billions in student debt forgiveness to more than 30 million borrowers, including those whose balances have grown from accrued interest and have been in repayment for years. In response, Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending (CRL), made...

WASHINGTON, D.C. – The Center for Responsible Lending (CRL) in a comment letter urged the Consumer Financial Protection Bureau (CFPB) to bolster its proposed overdraft rule with more measures to prevent very large banks and credit unions from evading the intent behind the rule. The CFPB estimates that, once finalized, its rule could save the 23 million households who pay...

Advocates Praise Program and Call for Foreclosure Pause Until It is Fully Implemented WASHINGTON – Today, the U.S. Department of Veterans Affairs released its VA Servicing Purchase (VASP) program to help VA borrowers facing financial hardships avoid unnecessary foreclosures. Through VASP, the agency will modify and purchase qualifying loans in default to provide meaningful payment assistance to VA borrowers in...

Washington, D.C., — The Biden administration announced today a new set of plans that would provide student debt relief to more than 30 million borrowers. If enacted, the proposals would waive accrued and capitalized interest— unpaid interest that is added to the principal of the loan— for millions of low-income borrowers, and up to $20,000 in unpaid interest for other...

Washington, DC – After decades of protecting borrowers from high-cost, payday lenders, Maryland lawmakers are poised to eliminate longstanding consumer protections in a bill that lets nonbank earned wage advance (EWA) lenders create an industry-defined financial category that allows them to charge triple-digit interest rates and unlimited junk fees on payday-style loans to hardworking consumers. There is ample evidence, including...

Consumers experienced a 56% increase in checking account overdrafts after using an advance product WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) released a report with new data showing that consumers who took out small loans using cash advance apps paid triple-digit annual interest rates, experienced high levels of repeat reborrowing, and incurred more bank overdraft fees after...