High-Cost Lenders Scheme with Banks to Evade Consumer Protections

A few high-cost lenders are evading state consumer protections through rent-a-bank schemes. Through these sham arrangements, these companies are exploding right through the interest rate limits that most states have put in place for good reason, to protect people from high-cost debt traps that drain them of their hard-earned income. In the following states, payday lenders are using banks, which...

The Ongoing Fight Over Payday Loans

Source
Jefferson Public Radio
The federal Consumer Financial Protection Bureau changed its tune on payday loans when the country changed presidents. The Center for Responsible Lendingnoticed. CRL's Ezekiel Gorrocino visits with details of the current situation with payday loans.

Testimony in Support of HB2588: Regulating the Practices of the Student Loan Industry

This written testimony focuses on three key areas of concern in support of HB 2588 to protect Oregonians from abusive practices by student education loan servicers: Oregon’s student loan debt crisis deepens the racial wealth gap and harms older Oregonians Abuses by student loan servicers prolong and deepen the student loan debt crisis, further increasing the racial wealth gap and...

Low-Income Oregonians Report Heavy Debt Levels with Long-Term Consequences

By the Stop the Debt Trap Alliance of Oregon, in partnership with the Center for Responsible Lending (CRL) In 2006, when Oregonians noticed the devastating impact payday and car-title lending was having on their communities, a coalition pushed for a change in the state laws, bringing new consumer protections to hundreds of thousands of people in the state. This example...

Undue Burden: The Impact of Abusive Debt Collection Practices in Oregon

In recent decades, an increase in consumer debt has led to substantial growth in the debt collection industry as Americans struggled to pay down their debts. A subset of the debt collection industry, debt buyers, emerged in the wake of this growth in consumer debt. Debt buyers purchase debts from lenders and other creditors at a steep discount and then...

States without Payday and Car‐title Lending Save $5 Billion in Fees Annually

Payday and car title loans are small-dollar, high-cost products that thrive on keeping consumers in a cycle of debt. With lenders doing essentially no underwriting, consumers find it easy to obtain these loans, often marketed as a solution to financial emergency. However, the unaffordability of the loan and the lenders extreme leverage over the borrowers – either through direct access...

Payday and Car Title Lenders Drain Nearly $8 Billion in Fees Every Year

Payday and car-title loans typically carry annual percentage rates (APR) of at least 300%. These high-cost loans are marketed as quick solutions to a financial emergency. Research demonstrates, however, that they frequently lead to debt that is nearly impossible to escape. In addition, these loans are related to a cascade of other financial consequences, such as increased overdraft fees, delinquency...