Research

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 same negative outcomes for borrowers. Bank payday loans carry an annual percentage rate (APR) that averages 225 to 300 percent. In 2011, the median borrower took out 13.5 loans, with over 1/3 of borrowers taking out...

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 $20 overdraft. Debit card purchases and ATM transactions account for at least 35% of all overdraft fees. Two-thirds of these penalty fees are paid by account holders charged more than six fees per year. Banks...

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 process. While borrowers in most states are protected from these high-cost loans, 21 states permit these products that trap borrowers in debt and put one of their most significant assets on the line. This chapter discusses key abuses in car-title...

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 households has a student loan. This chapter discusses key differences between federal and higher-cost private student loans, and recent and rapid increases in student defaults driven primarily by loans to...

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 nation's economic well-being. Read the Chapter Previous Chapter Next Chapter Overview [Video] CRL Research Director M William Sermons covers the key findings of the "America's Household Balance Sheet" chapter of...

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.

CRL Senior Research Debbie Bocian covers the key findings in the "Mortgages" chapter of State of Lending. </p>

CRL Senior Researcher Sonia Garrison covers the key findings of the "Student Loans" chapter in State of Lending.

Automobiles are one of the largest purchases most American households will make. Car ownership affects where people can live and expands their options for jobs. So the affordability and sustainability of auto financing can have a big impact on many U.S. households. Purchasing a car is a complicated endeavor, and the sales price, trade-in value, and financing can all have a big impact on the vehicle's overall cost. In this chapter, CRL describes how the lack of transparency and regulation in auto finance has allowed predatory practices to thrive. Read Our Auto Loans Chapter Previous Chapter...

Wells Fargo's direct engagement in payday lending should have a significant negative impact on their upcoming Community Reinvestment Act evaluation.