Press Releases

Advocates underscore real threat to state law protections against predatory lenders "The OCC's charter proposal enables companies to avoid state licensing regimes and oversight by state regulators and attorneys general." More than 250 groups sent a letter today to Comptroller of the Currency Thomas J. Curry urging him not to grant national charters to financial technology firms, which could preempt state oversight and state consumer protection laws that protect consumers and small businesses from abusive financial practices. The letter by state advocates, affordable housing providers, national

The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing today to consider the nomination of Dr. Ben Carson to be Secretary of the U.S. Department of Housing and Urban Development (HUD). Nikitra Bailey, an Executive Vice President for the Center for Responsible Lending's (CRL) released the following statement: The work of the Department of Housing and Urban Development contributes greatly to helping hard working families pursue their American dreams. Safe, decent, and affordable housing free of discrimination is a vital rung on the opportunity ladder. Dr. Ben Carson's

Today, the Consumer Financial Protection Bureau (CFPB) released a survey which highlights that over one-in-four consumers contacted by a debt collection agency felt threatened. Additionally, the CFPB noted in their survey that one in seven consumers contacted about a debt during the previous year were sued in state court. About 75 percent of those sued do not go to the court hearing, which generally makes them responsible for the debt. The CFPB survey, a first of its kind, provides comprehensive and nationally representative data on consumers’ experiences with debt collection. "The Bureau's

Today, the Center for Responsible Lending (CRL) lauded a group of U.S. Senate Banking Committee Democrats for calling on Wells Fargo Chief Executive Timothy Sloan to explain the recent boost in revenue from overdraft charges and whether the increase is connected to the bank’s practice of opening fraudulent accounts. In a letter, led by U.S. Senator Sherrod Brown (D-Ohio), ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, members expressed concern with reports the bank’s income from overdraft charges grew by more than seven percent between July and September

Research released earlier today by the Consumer Financial Protection Bureau (CFPB) finds that a growing number of consumers aged 60 or older are struggling financially to repay student loans. The majority of these loans were either co-signed or borrowed on behalf of younger family members. From 2005 to 2015, the number of senior citizens affected quadrupled from 700,000 to 2.8 million. The average debt owed by older borrowers also doubled during this time period from $12,000 to $23,500. Since 2015, nearly 40 percent of older federal student loan borrowers aged 65 or older were in default. In

The California Supreme Court recently ruled against payday lenders who try to use tribal sovereignty to avoid state licensing and consumer protection laws. In 2007, the California Department of Business Oversight (DBO)—then called the Department of Corporations—filed a suit alleging that private payday lenders such as Ameriloan and OneClickCash, each affiliated with the Miami Nation of Oklahoma or the Nebraska-based Santee Sioux Nation, had violated the law by lending without state licenses and charging excessive fees. The payday lenders had previously won lower court rulings before the case

Two recent federal actions underscore the challenges many college graduates have getting licensed in their career fields because of inadequate higher education regulations. The Career Ready Student Veterans Act, passed on December 13, prevents the Veterans Administration from approving programs for GI Bill dollars if graduates are ineligible for licensure in licensed programs. And on Friday, the U.S. Department of Education released final rules on postsecondary distance education programs. The final rules require that colleges be authorized to operate in the states where their students live in

DeVry University, one of the nation's largest for-profit universities has agreed to a multi-million dollar lawsuit settlement with the Federal Trade Commission (FTC). The case filed in January 2016 charged that at least since 2008, DeVry's deceptive marketing tactics deliberately sought to lure students into enrollment with false promises of job and income security upon graduation. Prospective students were told in their recruitment and in advertising that 90 percent of DeVry graduates would secure employment within six months of matriculation in their chosen fields. A second institutional

Today, the Center for Responsible Lending (CRL) released research showing that in Colorado, companies that purchase bad debts and attempt to collect on them frequently pursue the wrong person, try to collect the wrong amount, or pursue a debt that is not owed. Debt buyers flood the courts with lawsuits, though they often do not have the documentation to ensure that they are pursing the right person for the right debt. Debt buyers pay pennies on the dollar for bad debts and then attempt to collect the full amount. Further, the debt buyers count on the fact that most people will not hire a

Targeting Borrowers of Color Only Widens the Racial Wealth Gap The California Department of Business Oversight (DBO) published a new research report this week that shows payday loan stores in the state are disproportionately located in heavily African American and Latino neighborhoods (PDF). Combined, African Americans and Latinos make up almost 44% of the state's total population--and in those communities, on average, nearly 60% had six or more payday loan stores compared to white communities at 28%. DBO's research reflects a 2009 report by the Center for Responsible Lending (CRL) that shows