Research

Debt settlement[ 1] programs too often are not the solution they are marketed to be, according to this new CRL research. Debt settlement companies promote their programs as a way for debt-strapped consumers to become debt-free while paying a fraction of what they owe their creditors. However, our research shows that debt settlement program participants may be left in a...

Morgan Drexen Case Illustrates Harm to Consumers In the past, debt settlement companies typically charged hefty fees upon enrollment, before settling any debts. This practice created heavy incentives for companies to sign up as many people as possible, collect fees, and not settle any debts. In light of these problems, the Federal Trade Commission (FTC) issued rules regulating debt relief...

A host of civil rights and fair housing allies joined with CRL in submitting comments to federal financial regulators and HUD. The comments which addressed proposed rules on credit risk retention requirements focus on three key recommendations: •Support for the proposed alignment of mortgage rules to restrict risky loan features; •Protection of access to credit for qualified homebuyers; and •Opposition...

The National Consumer Law Center, Consumer Federation of America, Center for Responsible Lending and 26 other consumer and civil rights groups sent a letter to federal regulators urging stronger measures to stop illegal payments from being taken out of consumers' bank accounts. The letter went to federal bank regulators, the U.S. Department of Justice, and the Federal Trade Commission.

A Framework for Housing Finance Reform, CRL's new working paper looks to how what's worked well at Fannie Mae and Freddie Mac before conservatorship, can be preserved. Conversely, it also identifies core causes of what went wrong with the two GSEs. The paper's ultimate goal is to bring forth ideas that will provide long-term stability in the marketplace.

Payday loans, whether made online, in stores or by banks are designed to trap individuals in long-term debt. Data consistently show that the majority of payday loan revenue comes from repeatedly churning borrowers, and individuals are typically indebted for most of the year. The predatory features of payday loans, and the impact of their long-term debt on consumers, have in...

Download the Report As a supplement to our full research publications, these resources tell the story of our on-going State of Lending research series visually, through graphs, charts, maps, and video. Related chapters: Mortgages, Auto Loans, Credit Cards, Student Loans The Spillover Cost of Foreclosures by State The Three Scapegoats Your Next Car Loan: Avoid Paying Too Much Prepaid Cards...

In order to create a rule that meets consumer protection goals while also providing flexibility, the CFPB has established four different paths for loans to gain QM status. Each is detailed below: 1. General Definition: The general Qualified Mortgage definition requires eligible loans to not exceed the points and fees threshold, not have negative amortization or interest-only payments, not be...

This letter authored by representatives of the nation's largest civil rights advocacy organizations speaks to key policy concerns: preserving both access to mortgages and low down payments. Together, these two issues enhance the abilities of families to build wealth.

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. The survey of 1,004 likely voters was conducted between July 8-11, 2013, by Lake Research Partners...