Press Releases

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...

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...

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...

Washington, DC -- Bank and business trade groups recently were granted a preliminary injunction by a federal court in their ongoing lawsuit to block the Federal Reserve, Federal Deposit Insurance Corporation and Office of Comptroller of the Currency from implementing updates to the Community Reinvestment Act (CRA) that require big banks to lend to their entire community, particularly low-income and...

Washington, D.C., — The Biden administration announced today a series of proposals to improve our nation’s higher education system. These initiatives include eliminating origination fees for federal student loans and eliminating other fees that would make college education more affordable. In response, Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending (CRL), made the following statement: We...

Washington, DC -- Marcia Fudge has announced that she will step down next Friday as the 18 th Secretary of Housing and Urban Development, where she was a champion of policies to promote safe, equitable and affordable housing. Mike Calhoun, president of the Center for Responsible Lending, made the following statement: During her tenure at HUD, Marcia Fudge fought to...

WASHINGTON, D.C. – In tonight’s State of the Union speech, President Biden is widely expected to note progress and call for additional action to address junk fees in general and high-cost overdraft fees in particular. The Consumer Financial Protection Bureau (CFPB) recently proposed an overdraft rule that would apply to the nation’s largest banks and credit unions. The CFPB estimates...

WASHINGTON, D.C. – As part of the White House’s State of the Union push for policies to lower the cost of housing, President Biden today called for Congress to pass legislation to provide up to $25,000 in downpayment assistance to first-time homebuyers whose parents don’t own homes. The legislation would help an estimated 400,000 families become homeowners. The proposal mirrors...