Press Releases

Study confirms urgent need to curtail debt-collection abuses Washington, DC – New research from the Center for Responsible Lending (CRL) shows that strong debt-collection reforms do not restrict credit availability. Despite claims from the debt-collection industry, CRL analysis of data from North Carolina and Maryland – two states with recent debt-collection reforms – establishes that there was no sign of any negative impact to consumer credit. Unfair debt-collection practices undermine financial security, especially in low-income communities and households of color, hindering opportunities to

Latinos, Blacks and Seniors Targeted for High-Cost Loans Floridians have paid more than $2.5 billion in fees on high-cost payday loans over the last decade, according to new research by the Center for Responsible Lending (CRL). Further, in the most recent reported one-year period, June 2014 through May 2015, over $311 million in fees was paid on loans averaging nearly $400. These and other findings from a report entitled, Perfect Storm: Payday Lenders Harm Consumers Despite State Law refute recent claims that an existing state law has protected consumers in the Sunshine State and should be

The House Financial Services Committee continues its assault on regulators that fulfill their responsibilities to address predatory, high-risk financial practices. Today the Committee attacked the FDIC for curbing banks' involvement in tax refund anticipation loans. These products carry interest rates as high as 500% APR, posing clear consumer protection concerns as well as safety and soundness risks to the handful of banks involved in them. Mike Calhoun, CRL's President, issued the following statement: Tax refund anticipation loans preyed on low-income consumers by charging extraordinarily

Today, the Federal Housing Administration (FHA) issued new rules to update the certification process for loans backed by the agency. All lenders making FHA-backed loans must certify that each loan has complied with the appropriate rules that serve to protect both consumers and taxpayers. Lenders who violate the rules could face the liability of having to forfeit FHA insurance and buy back any loans they sold under false representations and pay triple damages. Lenders must also get certified to be eligible to offer FHA backed loans. Rules finalized today are for the individual loan

Missouri Attorney General should move to prohibit suing, collecting, or attempting to collect zombie debts. Jefferson City, MO – The Center for Responsible Lending (CRL) submitted to the Missouri Attorney General, comments to strengthen proposed reforms aimed to curb predatory debt-collection practices. In its comment, CRL submitted background on debt-collection abuses and provided recommendations to prevent the unfair collection of zombie debts, additional unfair collection activities, and unfair accrual of interest above the usury limit. Unfair debt-collection practices undermine financial

WASHINGTON, D.C. – Seventeen consumer and civil rights advocacy groups sent a letter today to investor and auto dealer, Warren Buffett, urging him to help end discriminatory auto lending practices in this country. In 2014, Mr. Buffett's Berkshire Hathaway purchased the largest privately-held auto dealership group in the nation, the Van Tuyl Group. The civil rights and consumer groups, which include several of the nation's oldest, largest, and most widely-known civil rights organizations, called Mr. Buffett's attention to the widely documented problem of "racially motivated and discriminatory

The CFPB took steps yesterday that underscore the barrier high-cost overdraft programs pose to many consumers, noting that they can lose their bank account as a result excessive fees. The Bureau urged banks to offer and encourage use of accounts with no overdraft fees, noting that while some banks already offer such accounts, many do not. Rachel Anderson, Director of Faith Affairs and the leader of CRL's work on abusive overdraft fees, said: It is difficult to imagine the impact on struggling families who have gained a foothold into the mainstream financial system through access to a bank

In the first week of this year’s Black History Month, the Consumer Financial Protection Bureau (CFPB) announced that it has reached a settlement with Toyota Motor Credit, which will result in the finance company paying up to $21.9 million in restitution to affected borrowers. Toyota Motor Credit’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 discrimination, and submit to additional oversight to monitor for potential future discriminatory impact. CRL Executive Vice

Consumer Advocates Question High Charge-Offs, 200% Interest Rates, and Borrowers’ Ability to Pay Consumer advocates criticized the high interest rates and high charge-offs of Elevate Credit, Inc. (Elevate), the online lender scheduled for the first tech initial public offering of 2016. "Elevate's loans have an average APR of nearly 200%, and a huge number of its borrowers default on their loans," said National Consumer Law Center Associate Director Lauren Saunders. Elevate's net charge-offs were 51% of revenues in 2014, the last full year for which the lender reported data in its SEC Form S-1

With the right rules in place, predatory lending can be reined in and abuses can be curbed even in the Internet era, according to a policy brief from the Center for Responsible Lending. The study, which looks at the effect of enforcement of state and federal laws, belies the industry’s claim that there are no rules that can stop predatory lenders in the digital age. Contrary to the message from predatory lenders, Attorneys General and other law enforcement leaders should not simply give up. Rather, where proper rules exist, their efforts are preventing the debt trap. Specifically the study