Press Releases

Yesterday, the Consumer Financial Protection Bureau (CFPB) issued a consent order requiring Discover Bank to pay a $2.5 million dollar fine and $16 million in refunds to consumers for illegal student loan servicing practices. The bank overstated the minimum amounts due on billing statements and denied consumers information they needed to obtain federal tax benefits. According to the CFPB, the...

In a speech today in Pittsburgh at the annual Veterans of Foreign Wars convention, President Obama announced new Department of Defense rules to further protect service members and their families from predatory lending practices. The rules strengthen the Military Lending Act (MLA), closing loopholes unscrupulous lenders use to target military families with predatory, high-cost loans, and applying the Act's rules...

The Consumer Financial Protection Bureau issued a Request for Information (RFI) soliciting feedback on student loan servicing issues. CRL submitted comments to this request for information – comment author Maura Dundon offered the following remarks on student loan servicing issues: Fair student loan servicing is critical to protect borrowers and help them repay their loans successfully. But student loan servicing...

Today, the Consumer Financial Protection Bureau (CFPB) announced that it has reached a settlement with Honda Finance Corporation, which will result in the finance company paying $24 million in restitution to affected borrowers. Honda's past practices resulted in thousands of borrowers of color paying higher interest rates than white borrowers. The company will also change its lending practices to reduce...

Yesterday, the Consumer Financial Protection Bureau and legal officials from 47 states and Washington, D.C. announced a joint settlement with JPMorgan Chase that will result in the bank paying $136 million in fines and $50 million in restitution based on investigations into its debt collection and debt sales practices. The investigations focused on the selling of "zombie debts" and incorrect...

The US Department of Housing and Urban Development today released its rule on Affirmatively Furthering Fair Housing (AFFH), taking definitive actions that will address "disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining...

A majority of Republican, Democratic and Independent voters across the nation support the work and mission of the Consumer Financial Protection Bureau, according to a recent national poll sponsored by the Center for Responsible Lending and Americans for Financial Reform. The poll also identified strong bipartisan support for consumer protections to guard against financial predators and for tough enforcement of...

The comment period on the US Department of Education proposed rule governing college-bank marketing partnerships closes on Thursday, July 2. CRL senior policy counsel Maura Dundon submitted comments to the Department and offered the following remarks: The Department of Education's proposed rule governing college-bank partnerships is a good first step towards protecting students from unfair marketing practices and overdraft fees...

Today, the Center for Responsible Lending (CRL) filed a public comment on urgently needed rules proposed by the California Department of Business Oversight (DBO) that would require payday lenders to follow California law by prohibiting the use of electronic transfers and debit cards in payday transactions. The rules would also create a new real-time electronic database to enforce existing law...

On June 18, the Student Loan Ombudsman at the Consumer Financial Protection Bureau released a new report on the private student loan industry that sheds light on many troubling servicing practices affecting students and loan co-signers. CRL senior policy counsel Maura Dundon offered the following remarks: The Consumer Financial Protection Bureau's report confirms what consumers and consumer advocates have known...