Press Releases

TALLAHASSEE, FL - Self-Help Credit Union and the Center for Responsible Lending (CRL) congratulate advocates who worked to defeat a bill vetoed by Governor Ron DeSantis yesterday that would have increased interest rates on large personal loans made to Florida residents. Advocates from consumer groups, faith groups, legal services and others joined Self-Help and CRL in calling to reject the bill, which would have raised allowable interest rates on installment loans up to $25,000. Adelcio Lugo, Self-Help’s Florida president, made the following statement: This bill would have raised interest on

WASHINGTON, D.C. – Today, the U.S. House of Representatives passed H.R. 3564, a bill that would reverse the Federal Housing Finance Agency’s (FHFA’s) recent update to the pricing of home loans that Fannie Mae and Freddie Mac buy. “The FHFA was deliberative and thoughtful in updating the pricing framework for conventional mortgages. The same cannot be said of the House of Representatives,” remarked Center for Responsible Lending (CRL) Vice President and Federal Policy Director Mitria Spotser. “This legislation would make it more expensive for lower-wealth, credit-worthy borrowers to purchase a

DURHAM, NC – Payday and car title lenders continue to operate in states with weak consumer protections, extracting nearly $3 billion in fees each year from low-wealth communities, according to a report released today by the Center for Responsible Lending (CRL). “ The Debt Trap Drives the Fee Drain: Payday and Car-Title Lenders Drain Nearly $3 Billion in Fees Every Year” breaks down by state the dollar amount of fees generated through these practices, finding that in total $2.2 billion are extracted through triple-digit interest single-payment and payday installment loans from borrowers with

DURHAM, NC - The Center for Responsible Lending (CRL) released a new map today showing triple-digit annual interest rates for single-payment payday loans in 28 states across the nation, even as several states move to cap rates around 36% to stop predatory payday lending within their borders. The map shows annual interest rates ranging from 140% to 662% for states that still allow lenders to make payday loans of a few hundred dollars that are due in full on the borrower’s next payday, often in just two weeks. “We’ve seen some shifts in the financial marketplace in recent years, but

OAKLAND, CA – Governor Jared Polis signed into law yesterday a measure to prevent online and out-of-state lenders from making high-cost loans in violation of Colorado law. The measure could be taken up in other states as a powerful tool for addressing the growing problem of lenders end-running state consumer protections through evasive schemes and legal maneuvering. Ellen Harnick, executive vice president and director of state policy for the Center for Responsible Lending (CRL), made the following statement: “Governor Polis has signed a law that is a solid solution to a huge and growing

Washington, D.C.– The Senate voted today in favor of a resolution under the Congressional Review Act (CRA) that seeks to dismantle President Biden's historic student debt relief plan and force millions of borrowers into retroactive repayment of their student loans, including waived interest. The bill also nullifies the Biden administration’s latest income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) reforms, and reverses student loan forgiveness already approved for tens of thousands of borrowers under PSLF, immediately creating a financial burden for military service

DURHAM, NC – Governor Tim Walz signed into law last week a measure capping annual interest rates on payday loans at 36% in Minnesota, with strict limitations on loans bearing annual rates from 37% to 50%. Payday loans above 50% will be outlawed. The measure is expected to stop predatory payday lending as Minnesotans know it, eliminating loans that carry average annual percentage rates of interest (APRs) of 220% that can create a cycle of long-term debt. Passage of the law, which takes effect January 1, 2024, continues a growing movement among the states to protect consumers from unscrupulous

Washington, D.C.– The Center for Responsible Lending (CRL) noted that a debt ceiling bill which resumes student debt payments – on a shorter timeline than previously announced – creates a repayment burden that reduces the economic security of working Americans still struggling to recover from the negative effects of the pandemic and rising inflation. View CRL’s letter to Congress. “Restarting student loan payments on the accelerated timeline included in the debt ceiling bill will add thousands of dollars to the average borrower’s loan balance and force many into loan delinquency,” said Jaylon

Washington, D.C.– The House is expected to vote today on a resolution under the Congressional Review Act (CRA) to repeal President Biden's student debt relief plan, end the current loan payment suspension and require retroactive student loan payments from borrowers, including waived interest. In addition, using the CRA – a tool that allows Congress to reverse final rules issued by federal agencies – would nullify the Biden administration’s latest income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) reforms, and reverse student loan forgiveness already approved for tens of

Proposed rule would require lenders to comply with California law, but triple-digit interest rates could remain OAKLAND, CA – Consumer advocates praised the California Department of Financial Protection and Innovation (DFPI) for requiring fintech cash advances to comply with the laws that govern other forms of credit and for cracking down on “tips” used to disguise interest. The groups voiced appreciation for the solid start and urged the DFPI to go further to protect consumers from potential financial harm caused by earned wage advance (EWA) and other fintech payday loans that can extract