Press Releases

The Center for Responsible Lending applauds the Federal Trade Commission for its tough new guidance against deceptive practices by vocational schools. "The FTC's new guidance on vocational schools identifies some of the most deceptive practices by for-profit colleges," said Maura Dundon, Senior Policy Counsel at the Center for Responsible Lending. "For-profit colleges that mislead students about their expected salaries, job placement, or the quality of the education should take notice that they are violating the FTC Act. The guidance does not technically extend to all for-profit colleges, but

Quietly and unexpectedly, the Massachusetts House passed HB 3569 via a voice vote on Wednesday. Yesterday, nearly two dozen consumer protection experts and community groups working to stop predatory lending in Massachusetts issued a major sign-on letter raising concerns about HB 3569 advancing further in the State legislature. The coalition letter is available online here. The troublesome legislation would reverse a long-standing statewide policy against for-profit debt relief services (including debt settlement) and allow providers to charge unlimited fees. The groups contend that the

CRL remains a strong supporter of Congressman Watt to head the Federal Housing Finance Agency. Rep. Watt is eminently qualified to run the agency and help put the housing market on the right path. We are deeply disappointed with today's outcome and urge the Senate to reconsider this important nomination. For more information, contact Ellen Schloemer at 919-539-9092 or ellen.schloemer@responsiblelending.org

Starting today, U.S. consumers sending money abroad will have more information on the fees and other terms of their remittance transfers, along with added protections against unfair or deceptive practices. These changes come as a result of rules published by the Consumer Financial Protection Bureau (CFPB). The World Bank projects that the global remittance market will top $700 billion by 2016. The U.S. has more immigrants than anywhere else in the world, and fees on outbound remittances here total more than $2 billion each year, according to Javelin Research and Strategy. The new rules require

Contacts: (NCLC): Lauren Saunders, lsaunders@nclc.org; (202) 595-7845 (CFA): Tom Feltner, tfeltner@consumerfed.org; (202) 618-0310 (CRL): Ellen Schloemer, ellen.schloemer@responsiblelending.org; (919) 313-8528 (WASHINGTON, D.C.) Federal regulators need to stop banks and payment processors from helping internet and tribal payday lenders collect illegal payments, consumer and civil rights groups urged today. In a letter (see www.nclc.org/payment-processing) sent to federal bank regulators, the U.S. Department of Justice, and the Federal Trade Commission, the National Consumer Law Center

Even as payday lenders attempt to defend their defective product, a growing number of actions by federal and state regulators are cracking down on their predatory practices. In the past 10 days, four major federal agencies—the Federal Deposit Insurance Corporation (FDIC), the Consumer Financial Protection Bureau (CFPB), the Department of Justice (DOJ) and the Federal Trade Commission (FTC)—took significant actions against all types of payday lenders, including banks that support payday loans. Additionally, in recent months, numerous states have stepped up to rein in payday lending, including

Two new studies show that the Credit CARD Act of 2009 successfully reformed credit card practices, with one study estimating that the Act is saving households over $20 billion per year in previously-hidden fees. Both studies also found no evidence that lenders restricted credit card lending or increased interest or fees to offset the protections mandated by the Act. These results confirm that regulation of financial products can increase consumer protections and result in substantial savings. A report published by the Consumer Financial Protection Bureau (CFPB) today looked at data covering 85

In recent days, criticism of the likelihood of supplemental FHA funding has generated widespread news coverage. Yet it is equally true that what FHA has accomplished must also be acknowledged. Since 1934, FHA has served the nation as a reliable and successful program that has provided broad homeownership opportunities to successive generations. More recently FHA played a crucial role through the foreclosure crisis. When private capital fled, FHA remained in operation, keeping the housing market alive by insuring millions of mortgages. The proposed draw from the U.S. Treasury Department would

Five years after the start of the economic crisis, public opinion continues to solidly favor both strong regulation of banks and financial companies and the need for the Consumer Financial Protection Bureau, according to a national telephone survey of likely voters conducted this summer. Financial regulation has been a divisive issue in Washington; by contrast, the electorate is strikingly united. Regulating financial services and products is seen as either "important" or "very important" by over 90 percent of voters, the survey found. For the most part, that attitude transcends differences of

Payday loans remain a damaging debt trap for millions of Americans, according to two new chapters in the Center for Responsible Lending's (CRL) State of Lending series. Payday loans carry triple-digit annualized percentage rates (APR) and strip more than $3.4 billion in fees from Americans annually. Although payday lenders market these loans as a quick financial fix, CRL finds that 85% of loans by payday lenders go to borrowers who take out at least seven loans a year. Payday loans made by a few outlier banks also produce striking cycles of repeat loans. These new chapters—covering payday