Research & Policy

Unsustainable lending pushed us into the financial crisis, and sustainable lending and responsible consumer financial services products are needed to restore and maintain economic health. An independent Consumer Financial Protection Bureau (CFPB), as enacted by the Dodd-Frank Act (DFA or Dodd-Frank), is critical to reestablishing these sustainable lending practices.

On July 21, the CFPB will be a cop on the beat to enforce the laws on credit cards, mortgages, student loans, prepaid cards, and other kinds of financial products and services. This report from the Bureau summarizes in one place what they've been up to.

Mortgages servicers should be required to give every mortgage holder "a good-faith review of foreclosure alternatives" before taking steps to take his or her home, CRL president Michael Calhoun told Congress today. In testimony before the House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit and Subcommittee on Oversight and Investigations, he recommended that servicers be required to...

CRL joins several groups in opposing proposed rules that would continue the OCC's broad preemption of state laws governing mortgages, credit cards, bank accounts and other banking products.

The Coalition for Sensible Housing Policy, including CRL, issued this paper to make the case for sound mortgage lending practices -- but not mandated down payments that would bar responsible home buyers from ownership. Learn about Qualified Residential Mortgage (QRM) proposals.

Better Overdraft Policies Put Money Back In Consumers' Pockets Regulators Must Stop Remaining Overdraft Abuses A new study by Market Rates Insight finds that Americans saved $1.6 billion in overdraft fees in 2010 after the "opt-in" rule took effect last summer. Once banks were required to get explicit permission before approving debit card overdrafts for a fee, most Americans said...

Federal regulators are proposing to mandate down payment requirements up to 20% on future home loans. Their proposal is part of the proposed standards for defining a " Qualified Residential Mortgage," or QRM. This brief updates and supplements "Don't Mandate Large Down Payments on Home Loans," published by CRL in March 2011. [1] Our analysis shows that a 10% down...

Read the full, original report or executive summary from February 2011. Watch our 4.5 minute video of Senior Researcher Josh Frank discussing the findings. Updated CARD Act Research (June 2011): Clearer Pricing Not Raising Rates CRL's research shows that the Credit CARD Act of 2009 has reversed much of the unclear pricing on credit cards, without leading to higher rates...

Why Did We Oppose HB 810? Read entire bill >> Read our summary of the bill >> What's happened with HB 810? >> Rates on small loans in NC are already too high. With families struggling, making these loans more expensive will be a disaster for NC consumers. 25 to 54% interest is enough. Consumer finance companies can already charge...

Read entire bill >> See our talking points >> What's happened with HB 810? >> The Consumer Finance Act lets non-bank lenders make small loans of $10,000 or less. The current law creates two tiers of lenders: "53-173" lenders who can make loans up to $3000 and "53-176" lenders who can make loans up to $10,000. If HB 810 had...

More Information: Summary of HB 810 Text of HB 810 Why Oppose HB 810? Background on Consumer Finance Loans in NC Who Opposes HB 810 ? How Did Your Representative Vote on HB 810 in 2011? House Bill 810, after barely passing the House in 2011, died in the Senate Rules Committee in 2012. And, for the first time in...

Chief Consumer Watchdog arrives in 2012 President Obama names former Ohio Attorney General as CFPB Director America's consumers now have a top cop in a wide range of financial affairs. Richard Cordray, a former Ohio attorney general and state treasurer was appointed by President Obama to become the first director of the Consumer Financial Protection Bureau (CFPB). After the greatest...

CRL and the National Consumer Law Center filed an amicus brief supporting appellant Donna Epps in regards to the improper repossession of the appellant's vehicle.

Survey finds low opt-in rate, high number of misperceptions Download the complete survey (PDF) >> When it came to convincing customers to opt in to high-cost overdraft coverage, it was as if the banks rigged the election but still lost the vote. A Center for Responsible Lending survey indicates that most consumers do not want high-cost overdraft coverage for their...

Rate Markups Cost Americans $25.8 Billion Over the Lives of Their Loans Download the Full Report (PDF) >> Download the Executive Summary (PDF) >> Rate Markup Volume Per State (Web Page) >> Costly Service The average dealer rate markup is $714 per loan. Learn what that may mean to a consumer's pocketbook. Cars are the most common nonfinancial assets held...

CRL joins mortgage bankers, Realtors, home builders and other housing groups in explaining how high down payments would make homeownership more expensive or out of reach for millions of American.

H.R. 1121 would threaten the ability of the newly-enacted Consumer Financial Protection Bureau (CFPB) to protect consumers from predatory and abusive financial practices. The bill, which would fundamentally change the structure of the CFPB from a single, accountable director to a weak five-person commission, would derail the consumer protections enacted under the Dodd-Frank act (P.L. 111-203). We urge Congress to...

Replacing CFPB Director with Commission and changing the funding structure would weaken the bureau's accountability and independence. S. 737 would threaten the independence of the newly-enacted Consumer Financial Protection Bureau (CFPB) and would harm the ability of the Bureau to properly protect consumers from predatory and abusive financial practices. The bill, which would remove the independent funding mechanism and fundamentally...

CRL joins civil rights groups in asking Congress to take a comprehensive approach to GSE reform that addresses lending disparities and underserved borrowers.

Ben Bernanke, Chairman Board of Governors of the Federal Reserve System John Walsh, Acting Comptroller Office of the Comptroller of the Currency Sheila Bair, Chairman Federal Deposit Insurance Corporation John Bowman, Acting Director Office of Thrift Supervision Re: Withdrawal of Proposed Consent Orders Regarding Mortgage Servicing Illegalities Dear Federal Regulators of the Financial Institutions of the United States: The undersigned...

Dealer Markups Alone Cost Americans $25.8 Billion Over the Lives of their Loans Predatory practices in auto financing force consumers to struggle not only for a competitive and affordable loan, but for a fair and honest one. Finding a good deal is no longer based on the quality of the car or the creditworthiness of the customer, but rather the...

CRL and the National Consumer Law Center filed an amicus brief supporting the Federal Reserve's opposition to a TRO and preliminary injunction that would prevent new mortgage rules from going into effect.

Download this ruling (PDF) >> An 11th Circuit Court held that an arbitration clause was unenforceable in a suit charging BB&T with reordering debit card transactions to boost bank overdraft fees.

Read the full report (PDF) >> Read the executive summary (PDF) >> Payday Loans, Inc.: Short on Credit, Long on Debt dispels the notion that a payday loan is a short-term debt. Although marketed and advertised as a quick solution to an occasional financial shortfall, the actual experience of payday loan borrowers reveals there is nothing quick about the loan...

Banks' Foreclosure Bias Hurts Investors CRL's report—"Fix or Evict? Loan Modifications Return More Value Than Foreclosures"—shows that banks routinely choose foreclosure over modifying mortgages, even when fixing the loan would be better for loan investors. This bias to foreclose drains investments, including pension funds for retirement, and slows economic recovery. Download PDF of complete report here. What do investors think...