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Press Releases

September 20, 2017
Senate and House Legislation would end the payday lending debt trap WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL), Americans for Financial Reform (AFR), and nearly 40 national and state organizations sent a letter urging Members of Congress to pass the Protecting Consumers from Unreasonable Credit Rates Act, a bicameral bill introduced by U.S. Senators Richard Durbin (D-Ill.) and Jeff Merkley (D-Ore.) and U.S. Representatives Matt Cartwright (D-Penn.) and Steve Cohen (D-Tenn.). The bill would protect consumers from predatory lenders by capping payday and car-title...
August 3, 2017
Pueblo, Colo. - Today, the Center for Responsible Lending (CRL) released research showing that payday lenders continue to trap Colorado borrowers in long-term high-cost debt despite a reform bill passed in 2010. A second CRL report documents much higher concentrations of payday lending stores in African-American and Latino neighborhoods in the state. The reports are being released ahead of a community conversation this evening in Pueblo regarding economic empowerment and predatory lending. The meeting is co-hosted by the NAACP State Conference, the NAACP Pueblo Branch, and CRL. Key...
July 12, 2017
WASHINGTON, D.C. - A new Center for Responsible Lending (CRL) policy analysis, "Been There; Done That," warns that banks are seeking the repeal of consumer protections established in 2013 that ensured that banks could no longer keep borrowers trapped in unaffordable payday loans. Six banks—Wells Fargo, US Bank, Regions Bank, Fifth Third Bank, Bank of Oklahoma and GuarantyBank—were making predatory payday loans to their own account holders until 2013, when a public outcry and risks to the banks’ safety and soundness led bank regulators to establish commonsense guidelines to curb these...
July 7, 2017
OAKLAND, CA – The California Department of Business Oversight (DBO) recently released its 2016 report on the state’s payday lending industry. The study showed the number of seniors caught in the debt trap, age 62 and older, nearly tripled since 2015. The study also showed that annual percentage rate (APR) for these payday loans rose to 372 percent, up from 366 percent reported in the previous year and that the industry is still heavily relying on repeat borrowers. "The number of seniors caught in the vicious payday lending debt trap is concerning and indicative of the type of group the...
June 22, 2017
Joint Statement by:Michael Calhoun, President, Center for Responsible Lending Lindsay Daniels, Manager, Wealth-Building Initiative, Economic Policy Project, National Council of La Raza (NCLR) Lisa Donner, Executive Director, Americans for Financial Reform Rich DuBois, Executive Director, National Consumer Law Center Tom Feltner, Director of Financial Services, Consumer Federation of America Karl Frisch, Executive Director, Allied Progress Wade Henderson, President and CEO, The Leadership Conference for Civil and Human Rights Edmund Mierzwinski, Consumer Program Director &...
June 2, 2017
One year ago, CFPB issued a proposed rule to stop the debt trap. Today, Congress seeks to advance bill to gut CFPB and give a free pass to payday lenders. The CFPB's ability to issue a strong rule against the abuses of 300% payday loans is exactly why Congress should be defending the CFPB, not attacking it. WASHINGTON, D.C. – Consumer advocates and civil rights organizations are calling on Congress to let the Consumer Financial Protection Bureau (CFPB) finish its job of finalizing a strong rule on payday and car-title lending. A year ago today, people from across the country...
May 31, 2017
OAKLAND, Calif. – AB 784, a bill to curb abuses by lenders charging more than 100% interest on loans of more than $2,500, was stalled in the Assembly Appropriations Committee last Friday, effectively preventing the proposal from moving forward to a floor vote. Earlier last week, Assembly Banking Committee Chair and author of the bill, Matt Dababneh (D-Encino), proposed a set of amendments that would have greatly limited the bill's protections by exempting car-title loans and loans that could be targeting small business. Dababneh's provisions would have allowed lenders to charge borrowers...
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....
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 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...

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