Press Releases

Download the Report Car Title Lending: Driving Borrowers to Financial RuinWashington -– Cash-strapped families risk losing their cars in the latest form of high-cost small lending spreading across America, according to a new report from the Center for Responsible Lending (CRL) and Consumer Federation of America (CFA). Borrowers who put their cars on the line to borrow a few hundred...

DURHAM, N.C. -- A lawyer at the Center for Responsible Lending (CRL) will testify tomorrow before a subcommittee of the U.S. House of Representatives' Committee on Small Business on how payday lenders prey on military personnel. The Subcommittee on Rural Enterprise, Agriculture and Technology meets in Kansas City, Missouri amid newspaper reports on service members victimized by payday lenders, who...

WASHINGTON, D.C., -- Civil rights groups joined consumer organizations in opposing a bill in Congress that would gut protections against predatory lenders. That bill, introduced by Reps. Bob Ney of Ohio and Paul Kanjorski of Pennsylvania, would make it easier for unscrupulous lenders to rob the nation's most vulnerable families of their homes and savings. NAACP Chairman Julian Bond urged...

Download the Report Race Matters: The Concentration of Payday Lenders in African-American Neighborhoods in North Carolina DURHAM, NC -- Payday lenders who trap people in triple digit-interest loans locate their stores in African-American neighborhoods in higher concentrations, according to a report by the Center for Responsible Lending (CRL). African-American neighborhoods in North Carolina have three times as many payday lenders...

Download the Report Race Matters: The Concentration of Payday Lenders in African-American Neighborhoods in North Carolina DURHAM, NC -- Payday lenders who trap people in triple digit-interest loans locate their stores in African-American neighborhoods in higher concentrations, according to a report by the Center for Responsible Lending (CRL). African-American neighborhoods in North Carolina have three times as many payday lenders...

WASHINGTON, D.C. -- A new bill in Congress would demolish many of the protections states and the federal government have carefully erected against predatory lenders and would expose millions of homebuyers to the loss of their savings and even their homes. The bill by Congressmen Robert Ney of Ohio and Paul Kanjorski of Pennsylvania would preempt state laws proven effective...

WASHINGTON, D.C. -- A bill by Rep. Brad Miller, Rep. Mel Watt and Rep. Barney Frank, the ranking Democrat on the House Finance Committee, would protect homeowners from predatory lenders far better than current federal law, says the Center for Responsible Lending. The bill is modeled on a North Carolina law that has reduced predatory loans and would eliminate current...

View this document (PDF) Ernst & Young LLP recently released a report discussing the outcomes of binding mandatory arbitration ("BMA") in credit-related, consumer-initiated arbitration cases.1 As an increasingly standard contract provision, consumers often unknowingly or feel compelled to accept pre-dispute BMA clauses in their contracts. These clauses strip consumers of their right to dispute claims in a court with a...

WASHINGTON, D.C. -- Borrowers who need protection from triple-digit interest rates when they overdraw their bank accounts won't get it from federal regulators, who are asking financial institutions to police themselves. Now it is up to the Federal Reserve Board to provide at least one important protection to borrowers by requiring banks and other financial institutions to disclose the annual...

Download the Reports Borrowers in Higher Minority Areas More Likely to Receive Prepayment Penalties on Subprime Loans (PDF 364kb) Prepayment Penalties Convey No Interest Rate Benefits on Subprime Mortgages (PDF 351kb) DURHAM, N.C. -- People with subprime home loans who live in minority neighborhoods face 35 percent greater odds of being saddled with prepayment penalties than borrowers living in predominantly...