Skip to main content

Search form

Press Releases

May 22, 2017
New Rules Will Create a Monopoly for a Single Servicer and Eliminate Requirements for Several Important Services WASHINGTON, D.C. - Today, the Center for Responsible Lending (CRL) expressed concern that new requirements released by the U.S. Department of Education in its contract solicitation for a future loan servicer will narrow the nation’s student loan servicers from nine to a single servicer, essentially creating a monopoly over management of a $1.3 trillion loan portfolio. The requirements also eliminate several services that the former administration had expected of student loan...
May 16, 2017
Using the CRA, Congress and White House have Erased Fourteen Regulatory Protections This Year WASHINGTON, D.C. - Today, the Center for Responsible Lending (CRL) commended Senator Cory Booker (D-NJ), Senator Tom Udall (D-NM), Congressman David Cicilline (D-RI), and Congressman John Conyers (D-MI) for introducing the Sunset the CRA and Restore American Protections (SCRAP) Act, a bill to repeal the Congressional Review Act (CRA). The CRA is a fast-track legislative tool that Congress can use to quickly eliminate the previous presidential administration's regulations, which were years or...
May 16, 2017
Faith and Credit Roundtable Calls Community to Action as Congress Threatens to Tie Hands of Consumer Agency DURHAM, N.C. — As the U.S. House of Representatives moves a bill that would roll back key consumer protections put into place after the 2008 financial crisis, the Faith & Credit Roundtable is calling on people of faith across the country to demand that Members of Congress support reform of predatory payday lending.  The Faith & Credit Roundtable is an interfaith coalition that seeks to end predatory lending's harmful impact on economically vulnerable families....
May 11, 2017
WASHINGTON, D.C. – A Congressional Review Act (CRA) resolution to repeal a new consumer protection rule on prepaid cards is not set to advance in the Senate ahead of a deadline, nixing the measure’s chances of getting a vote by the full chamber. The prepaid card rule was finalized by the Consumer Financial Protection Bureau (CFPB) last October. The rule includes many commonsense protections for prepaid users, such as standard fraud and disclosure provisions of the Electronic Funds Transfer Act. These protections apply to error resolutions, lost cards, and unauthorized transactions,...
May 4, 2017
WASHINGTON, D.C. – Today, the House Financial Services Committee passed along straight party lines the "Wrong CHOICE Act," an extreme bill that would shred essential consumer protections enacted in the wake of the financial crisis through the Dodd-Frank Wall Street Reform and Consumer Protection Act. Separately, the American Bankers Association recently wrote a letter asking President Trump’s Administration to essentially eliminate protections against predatory small dollar loans, including the popular CARD Act, which has saved consumers billions of dollars. Both initiatives call for nixing...
April 26, 2017
Hearing held today on legislation that would shred consumer protections enacted in wake of the financial crisis WASHINGTON, DC – Today at 10 AM, the House Financial Services Committee will hold a hearing on an updated and even more extreme version of the so-called Financial CHOICE Act. This radical bill would expose American families to risky financial practices that contributed to the Great Recession of 2008. For example, the legislation would severely obstruct the work of the Consumer Financial Protection Bureau (CFPB), an agency that has returned nearly $12 billion to 29 million...
April 24, 2017
WASHINGTON, DC – House Financial Services Committee Chairman Jeb Hensarling (R-TX) recently released text of the so-called Financial CHOICE Act 2.0, his plan to repeal and replace the Dodd-Frank financial reform law. The Chairman’s legislation would prevent the Consumer Financial Protection Bureau (CFPB) from regulating payday and car-title lenders. This is a new provision that was not in last year’s version of the bill. The Financial CHOICE Act 2.0 is scheduled to have a hearing on this Wednesday, April 26th. Section 733 of the CHOICE Act 2.0 discussion draft: (t) NO AUTHORITY TO...
April 20, 2017
A new report released today by the Center for Responsible Lending (CRL) shows that students at Maine’s for-profit colleges carry higher levels of debt, borrow in higher percentages, and have worse repayment rates on that debt compared to their peers at public and private non-profit institutions. These debt burdens fall especially heavily on African-Americans, women, and low-income students, who are disproportionately enrolled in for-profit colleges in the state. CRL analyzed data from the U.S. Department of Education and found the following: The for-profit sector enrolls 6% of all...
April 5, 2017
Amid Baseless Attacks on Consumer Protection Agency, CFPB Director Richard Cordray Testifies Before House Financial Services Committee Today, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray will testify at a House Financial Services Committee on the 2016 Semi-Annual Reports from his agency. Since its inception in 2010, the independent CFPB has provided 29 million Americans harmed by financial companies with a total of nearly $12 billion in relief, it has helped families across America resolve disputes with unscrupulous lenders, and it has implemented new rules that...
April 4, 2017
Consumer Advocates Question FinTech Company’s High Default Rates, Triple Digit Interest Rates Consumer advocates criticized the high interest rates and high default rates of Elevate Credit, Inc. (Elevate), an online lender that is expected to soon have an initial public offering. In its recent filing with the SEC, Elevate cited several risks to potential investors, including “regulatory limitations on the products we can offer and markets we can serve.” The Consumer Financial Protection Bureau (CFPB) is currently developing a rule on small dollar loans. "Elevate charges its customers an...

Pages