Press Releases

WASHINGTON, D.C. – The market for personal loans is massive and growing, yet the fintechs and other non-bank lenders who make such loans are not subject to regular oversight by the Consumer Financial Protection Bureau (CFPB), which has “created an unlevel playing field and a large risk to consumers,” write the Consumer Bankers Association (CBA) and the Center for Responsible Lending (CRL). The groups jointly filed a petition for the CFPB to develop a rule that would define larger participants in the market for personal loans so that sizable non-depository lenders would be subject to consistent

400% Interest Payday Loans Lead Borrowers into Long-Term Debt Trap DURHAM, NC – The Center for Responsible Lending (CRL) today released the first episode of its “In Focus” video series, designed to break down complex financial issues and make them easier to understand. In the series, CRL financial experts will help people recognize and prevent financial exploitation, to promote financial fairness for all Americans. In the APR Matters video, CRL senior policy counsel Yasmin Farahi explains why predatory payday lenders downplay the APR (annual percentage rate of interest) for high-cost loans

Debt Buyers’ Lawsuit Assembly Lines Should Be Dismantled for Lack of Appropriate Documentation of Debt Raleigh, NC – Yesterday, the North Carolina Supreme Court heard oral arguments in the case of Townes v. Portfolio Recovery Associates (PRA), for which the Center for Responsible Lending (CRL) and several other organizations submitted an amicus brief. The brief urges North Carolina courts to enforce existing statutory protections — and interpret laws as they were written — to prevent harm to vulnerable consumers. The NC Attorney General also submitted a brief in support of Townes. The case was

WASHINGTON, D.C. – A new Morning Consult poll commissioned by the Center for Responsible Lending (CRL) found that the federal student loan payment pause has helped struggling borrowers pay for daily living expenses and other debts. Of those surveyed, 37% said the payment pause helped them pay for gas, food and transportation while 31% said it helped them pay for credit card debt, personal loans, among others. The poll also found strong bipartisan support for a wide range of actions to help students with the cost of managing debt. “While President Biden’s recent cancellation plan has given

WASHINGTON, D.C. – The Biden Administration announced today that it will cancel $10,000 of student loan debt for borrowers who earn less than $125,000 as individual tax filers and $20,000 for Pell Grant recipients, providing billions in relief to the nation’s borrowers. The administration will also extend the federal student loan payment pause through December 31, 2022. In response, Jaylon Herbin, outreach associate and policy manager for the Center for Responsible Lending (CRL), made the following statement: We applaud President Biden for being the first sitting president to cancel any amount

Proposed mega-bank would be the sixth largest in the U.S. Federal bank regulators haven’t formally rejected a merger application in over 15 years, but Biden Administration has highlighted market concentration WASHINGTON, D.C. – Amid growing concern about corporate consolidation, the Center for Responsible Lending (CRL) and Americans for Financial Reform Education Fund are leading a letter calling for the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to reject a proposed merger between TD Bank and First Horizon Bank. Their comment letter points to several reasons why

Washington, D.C. – The U.S. Department of Education announced yesterday that it will discharge all remaining federal student loans for borrowers who attended ITT Technical Institute (ITT) from January 2005 through September 2016. The relief, $3.9 billion in total, will benefit about 208,000 borrowers. In response, Jaylon Herbin, outreach and policy manager for the Center for Responsible Lending (CRL), made the following statement: We applaud the administration for providing relief to the tens of thousands of former ITT Tech students who had been defrauded by their school. However, while

New report supports movement to end cash bail in San Francisco Bay Area and across the U.S. WASHINGTON, D.C. - A new report released today by the Center for Responsible Lending (CRL) highlights how bail bond companies, acting with little regulatory oversight, saddle low-income and low-wealth families with unmanageable debt burdens that have devastating short- and long-term financial consequences, particularly for Black and Latino families. CRL partnered with the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area (LCCRSF) to conduct interviews with San Francisco Bay Area

WASHINGTON, D.C. – Today, the U.S. House Committee on Financial Services voted to advance to the full House legislation authored by Congresswoman Carolyn Maloney (D-N.Y.), the Overdraft Protection Act (H.R. 4277). “Excessive overdraft fees take advantage of families when they experience tough times, making their lives even harder,” said Nadine Chabrier, senior policy counsel at the Center for Responsible Lending (CRL). “The Overdraft Protection Act would provide consumers with much-needed relief by requiring the cost of each overdraft fee to be reasonable, limiting how frequently the fee is

WASHINGTON, D.C. – The Senate today approved the nomination of Michael Barr to serve as Vice Chair for Supervision at the Federal Reserve. Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: More than ever, we need knowledgeable financial regulators at the helm of our country. Michael Barr is a well-qualified choice for Vice Chair for Supervision at the Federal Reserve. Mr. Barr has a record of standing up for regulations – like the Community Reinvestment Act and overdraft protections – that promote financial fairness for all Americans, and for