Press Releases & Commentary
- Predatory Lending Laws Work, Study Finds
November 23, 2015
With the right rules in place, predatory lending can be reined in and abuses can be curbed even in the Internet era, according to a policy brief from the Center for Responsible Lending.
- House Vote Undermines Anti-Discrimination Laws
November 19, 2015
The U.S. House of Representatives voted last night to pass H.R. 1737, the Reforming CFPB Indirect Auto Financing Guidance Act. The bill requires the Consumer Financial Protection Bureau to rescind its warning to lenders who provide auto loans through dealerships that certain practices risk violating fair lending laws. Auto dealers have discretion to raise the interest rate for which borrowers qualify and then keep some or all of the additional charges.
- Poll Shows Overwhelming Support for Mortgage Rule at Risk in House Vote Next Week
November 13, 2015
A key mortgage lending reform – which would be rolled back by a bill coming up for a vote in the House of Representatives next week – commands the support of an overwhelming majority of voters, according to a poll conducted this summer by Lake Research on behalf of Americans for Financial Reform and the Center for Responsible Lending.
- Car Dealer Interest Rate Markups Lead to Higher Interest Rates, Not Discounts
November 13, 2015
A new policy brief from the Center for Responsible Lending (CRL) shows that most consumers would pay lower interest rates if car dealers stopped getting paid through increases in the interest rate. According to industry data, as many as 70% of borrowers would pay a lower interest rate if the car lending industry shifted to a flat fee compensation model. Borrowers of color would likely see the most savings.
- New Report Quantifies Fees Drained by Payday and Car Title Loans in the Buckeye State
November 9, 2015
According to a new report released today by the Center for Responsible Lending, payday and car title loans continue to burden Ohioans with unaffordable, triple-digit interest rate debt, draining millions of dollars a primarily from low-income people. These findings are the first look at the Ohio payday and car title lending market since Ohio voters went to the polls in 2008 to affirm capping the rate at 28% annually, a mandate which lenders have subverted through legal loopholes.
- Rules Ban Colleges from Steering Students to High Cost Bank Accounts
October 27, 2015
Final rules issued today from the Department of Education will protect college students from being pushed into high-fee bank accounts by their colleges, banks and bank affiliates. The rules will ban overdraft and other bank fees on some accounts jointly marketed by these financial entities. It will also require that the accounts be marketed more fairly.
- Consumer Bureau Takes First Step to Increase Consumer Rights in Contracts
October 6, 2015
Today, the Consumer Financial Protection Bureau released a proposal to rein in the widespread use of clauses in financial services contracts that ban class action lawsuits by groups of consumers who have been harmed. They stopped short of also banning binding mandatory arbitration provisions.
- Report Shows Payday, Car Title Lenders Moving Into Unsafe Installment Loans
October 1, 2015
A new policy brief released today by the Center for Responsible Lending provides a state-by-state snapshot showing predatory payday and car title lenders increasingly moving into installment loans. The lenders are continuing to offer unsafe loans with excessive interest rates, which are carefully designed to trap borrowers in a cycle of debt they cannot escape, and actively seeking to expand into new states.
- Fifth Third to Pay $21 Million for Illegal Auto Lending, Credit Card Practices
September 29, 2015
Yesterday, the federal Consumer Financial Protection Bureau (CFPB) announced that Fifth Third Bank will pay $21 million back to consumers as a part of two investigations into the institution’s practices. The bank will pay $18 million to African American and Latino consumers for engaging in auto dealer markups a discriminatory lending practice that resulted in borrowers of color paying more for their car loans.
- Report Shows Student Loan Servicing Is A Mess In Need of Urgent Cleanup
September 29, 2015
Today, the Consumer Financial Protection Bureau’s (CFPB) and Department of Education (DOE) issued a new report on student loan servicing that confirms concerns that the student loan servicing system is both hurting borrowers and taxpayers and in need of swift regulatory reform.