Press Releases

Consumer Advocates Urged FDIC to Downgrade the Bank’s CRA Rating Over its Triple-Digit Interest Rate Rent-a-Bank Loans, Deceptive Marketing WASHINGTON – Late last week, the Federal Deposit Insurance Corporation (FDIC) made public that it has downgraded the Community Reinvestment Act (CRA) performance rating of Transportation Alliance Bank (TAB Bank) to “needs to improve,” a low rating that few banks get. The FDIC found that the Utah-based bank committed unfair or deceptive acts or practices that “impacted a large number of consumers over an extended period of time." Consumer advocates had

WASHINGTON, D.C. – Center for Responsible Lending (CRL) Senior Policy Counsel Nadine Chabrier issued the following statement: “Holiday shopping is ramping up and shoppers are increasingly using new, underregulated credit products like ‘Buy Now, Pay Later’ and ‘Earned Wage Access.’ Retailers are also facilitating predatory point-of-sale loans for purchases including for puppies and jewelry. Policymakers should use this moment to recommit to strengthening consumer protections. Holiday dreams should not turn into debt nightmares.” For decades, payday lenders have exploited low-income Americans in

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today ordered Wells Fargo Bank to pay a $3.7 billion settlement over customer abuses tied to its mortgage and automobile lending practices, and surprise overdraft fees and other incorrect charges to customer bank accounts. The bank’s actions led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes. Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: Wells Fargo is a repeat offender for abusive customer

WASHINGTON, D.C. – The Senate Banking Committee this week approved the nomination of Martin Gruenberg to be the permanent head of the Federal Deposit Insurance Corporation (FDIC), along with approving two other FDIC nominees. Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: Martin Gruenberg is a well-qualified, experienced financial regulator with a strong track record of protecting depositors, taxpayers, and consumers. We urge the full Senate to swiftly confirm Mr. Gruenberg, along with vice chair nominee Travis Hill and board of directors

Lenders squeeze borrowers with large balances, long terms, expensive and unnecessary add-on products DURHAM, NC – Large, personal loans demand scrutiny from regulators and lawmakers in Colorado and elsewhere to ensure practices that harm consumers are stopped, concludes an analysis released today by the Center for Responsible Lending (CRL). Analysis of loan agreements, industry reports and company websites show disturbing and costly practices by two large consumer finance companies, OneMain and Lendmark. The lenders are operating in Colorado under the Consumer Credit Code, which allows annual

WASHINGTON, D.C. – Today at 3 pm et, the House Committee on Veterans Affairs will hold a legislative hearing on a discussion draft bill, the VA Housing Loan Forever Act of 2022. Click here for live video and all hearing documents. Click here for written testimony from Mitria Spotser, a consultant for the Center for Responsible Lending (CRL). In her testimony, Mitria Spotser states, “[E]nabling the transfer of VA home loan benefits would make homeownership more easily obtainable for many of the families of servicemembers that were denied the ability to utilize the program during their lives and

Washington, D.C. — Today, a broad coalition of financial services and consumer organizations wrote a letter expressing support for new legislation to close the industrial loan company (ILC) charter loophole, the “Close the Shadow Banking Loophole Act.” The legislation, introduced by Senate Banking Committee Chairman Sherrod Brown (D-OH), Sen. Bob Casey (D-PA) and Sen. Chris Van Hollen (D-MD), prohibits shadow banks and nonbank commercial entities from taking advantage of legal loopholes. These loopholes allow these companies to control a full-service FDIC-insured depository institution without

Americans strongly support rules to protect consumers from unfair financial practices, such as discrimination, excessive fees, and abusive lending and debt collection WASHINGTON, D.C. – A new poll released today shows voters across the political spectrum overwhelmingly back the mission of the Consumer Financial Protection Bureau (CFPB), financial regulation generally and a variety of new, specific consumer protections. The findings are released as the Supreme Court is poised to consider a lawsuit from payday lenders that could invalidate the CFPB’s funding mechanism, which would undermine its

Washington, D.C.– The Department of Education (ED) yesterday announced it has extended the pause of student loan repayment, interest and collections through June 30, 2023. The announcement comes as the administration awaits a requested Supreme Court ruling regarding lawsuits that have prevented its student loan cancellation plan from moving forward. Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending (CRL), made the following statement: Tens of millions of student loan borrowers are relying on the courts to uphold the legality of the cancellation plan. As U.S

Washington, D.C.– The Department of Education (ED) and Department of Justice (DOJ) announced yesterday policy changes to the bankruptcy discharge process for student loan borrowers. The new changes simplify and standardize the process for economically distressed borrowers to discharge their debts. Whitney Barkley-Denney, deputy director of state policy and senior policy counsel at the Center for Responsible Lending (CRL), made the following statement: For decades, it has been nearly impossible for students to get their debts discharged through bankruptcy. The announcement is long overdue and