Research

In the U.S. today, total student loan debt exceeds $1 trillion and nearly one in five households has a student loan. This chapter discusses factors leading to the growth in student loan debt and highlights important differences between federal and more costly private student loans. The chapter also shows the spike in student loan defaults and highlights the role of...

Debt settlement companies offer the promise of settling a consumer's debt for a fraction of what they owe. The idea is simple: debt settlement companies offer to negotiate down the outstanding debt (usually from credit cards) owed to a more manageable amount so that a consumer can become debt free. Unfortunately debt settlement carries significant risks that may result in...

The debt collection industry is a rapidly expanding business, with revenue increasing up to 600 percent between 2003 and 2012. Private companies buy billions of dollars of charged-off debt from banks each year. The most common type of debt purchased comes from credit cards, but debt buyers also buy student loans, medical debt and more. As the industry has grown...

Payday loans—high-cost, quick-fix loans that trap borrowers in debt by design—cost cash-strapped American families $3.4 billion in fees every year. Of that number, more than two-thirds—$2.6 billion--is a direct result of churning borrowers into loan after unaffordable loan. This churning dramatically increases payday lending fees without providing borrowers with access to new credit. Payday loans have multiple features that make...

Even in the face of strong opposition by banking regulators, a few banks continue to make triple-digit payday loans. In this chapter, our analysis shows no meaningful distinction between storefront payday lending and bank payday lending. Banks give their products names such as "Ready Advance" and "Early Access," but these loans come with the same predatory features and produce the...

In spite of regulatory changes in recent years, many banks and credit unions continue to charge abusive fees on debit cards and checking accounts. In "High-Cost Overdraft Practices," CRL discusses these findings: In 2011, overdraft fees cost consumers $16.7 billion. Debit card transactions trigger the most expensive fees. On debit card purchases, the median overdraft charge is $35 for a...

Car-title lending — making expensive loans secured by the title of a vehicle a borrower owns out-right — has become a multi-billion dollar industry in the U.S. over the last decade. CRL estimates that car-title lenders generate nearly $2 billion in loans annually, with borrowers paying more than $4 billion in fees — twice the amount loaned — in the...

Income and employment opportunities are important for wealth-building and financial well-being, and a college education is critical in today's competitive job market. But post-secondary education has never been more expensive, and most U.S. families rely on student loans to help finance a college education. In the U.S., total student loan debt now exceeds $1 trillion and nearly one in five...

This chapter in the State of Lending report series describes the overall financial status of U.S. households today--their income, spending, debts, and wealth. It tells the story of financial challenges that consumers have faced in the past decade, and how these have made Americans more vulnerable to predatory lending. It also describes how household financial health is central to our...

Car dealerships often markup auto loans by steering buyers into a higher interest rate loan than they qualify for. Don't let this happen to you. Find out how much extra interest may be in your next car loan with this calculator.