Skip to main content

Search form

Press Releases

June 20, 2016
As representatives of consumer, community, religious and civil rights organizations, we applaud the Consumer Financial Protection Bureau (CFPB) for releasing a strong proposed payday and car title lending rule and urge the Bureau to close some concerning loopholes that would allow some lenders to continue making harmful loans with business as usual. At the heart of the CFPB's proposed rule released earlier this month in Kansas City, Missouri, is a common sense principle—that lenders should be required to determine whether or not a consumer has the ability to repay a loan without hardship...
June 2, 2016
The Consumer Financial Protection Bureau (CFPB) today released proposed rules that, if strengthened, could rein in the worst abuses of payday and car-title lending. As written, however, the rule contains exceptions and loopholes that abusive lenders will use to evade the rule's protections and continue to trap vulnerable borrowers in unaffordable 300-plus percent interest loans. In response to the proposed rule, Mike Calhoun, CRL President, issued the following statement: At the heart of this proposed rule is the reasonable and widely accepted idea that payday and car title loans...
May 18, 2016
The Consumer Financial Protection Bureau (CFPB) today released a research report on car-title lending that underscores earlier independent findings by the Center for Responsible Lending (CRL). Car title loans are high-cost, high-interest loans secured by the title of a vehicle the borrower owns outright. After analyzing millions of records, CFPB found that: One in five borrowers have their vehicles repossessed; 80% of loans are not retired when due; Two-thirds of all lender volume comes from borrowers stuck in seven or more loans. These findings are consistent with...
May 18, 2016
Damning Report on Car Title Loans, New Figures on Consumer Fee Drain, Heighten Calls for Strong National Rule Earlier today, the Consumer Financial Protection Bureau (CFPB) announced plans for a field hearing that may serve as the backdrop for unveiling a proposed national rule governing a range of abusive small-dollar lending practices. The announcement was made the same day the CFPB issued a report detailing the devastation wrought by one of these practices, car title lending, finding that one in five borrowers has their car seized due to inability to repay – and a day after the Center...
May 17, 2016
New research from the Center for Responsible Lending finds that every year, $8 billion in fees is lost to one of two types of small-dollar, predatory lending: payday and car-title loans. Usually sold to consumers with average incomes of approximately $25,000, these loans may have different names; but both charge triple-digit interest rates that generate the bulk of their debt trap fees. These fees leave most borrowers renewing rather than retiring the loans. The new report is the first update since 2013 that tracks fees charged state-by-state to these two predatory products. These billion-...
May 11, 2016
Google, a leading global search engine, today announced that it would no longer accept advertising for payday loans. Terming the development as an ‘update to its financial services policy', the decision will end many of its prominent online ads. Until now, these ads appeared even in states that have banned payday lending's triple-digit interest rates. Google's action also precedes a long-awaited regulation from the Consumer Financial Protection Bureau (CFPB) as to how small-dollar lending will operate in the marketplace. In response, Keith Corbett, Center for Responsible Lending...
May 2, 2016
A new survey finds that Colorado voters strongly oppose the idea of raising interest rates on consumer loans. Opposition was widespread among voters across lines of race, party affiliation, and household income, but the intensity of opposition was especially strong among voters of color and those who had served in the military. Overall, 51% of voters said they would be "much more likely" to vote against a legislator who voted to increase interest rates. That number rose to 58% of military service-members or veterans, and 62% of non-whites. At issue are consumer loans that typically range...
April 20, 2016
Today the Consumer Financial Protection Bureau (CFPB) released a new report that proves how high-cost fees on small-dollar loan create rather than resolve financial challenges for borrowers. An 18-month analysis of loans made by more than 330 payday lenders found that half of all borrowers—nearly 10,000—were charged an average of $185 in bank penalties, hidden costs usually in the form of overdraft or nonsufficient fund fees – or both. Repeated attempts by lenders to collect failed 70 percent of the time, but racked up substantial additional fees nonetheless. Involuntary bank account...
April 14, 2016
Center for Responsible Lending, and Groups Nationwide Tell CFPB: Beware Same Old Predators in Different Clothing The Consumer Financial Protection Bureau’s efforts to rein in the worst abuses of traditional, two-week payday lending schemes must not leave the door open to longer-term loan products that are similarly predatory debt-traps by design, nearly 150 consumer advocacy and civil rights groups representing thousands of Americans in more than 45 states told Consumer Financial Protection Bureau Director Richard Cordray in a hand-delivered letter. At issue is a new rule the CFPB is...
March 24, 2016
Latinos, Blacks and Seniors Targeted for High-Cost Loans Floridians have paid more than $2.5 billion in fees on high-cost payday loans over the last decade, according to new research by the Center for Responsible Lending (CRL). Further, in the most recent reported one-year period, June 2014 through May 2015, over $311 million in fees was paid on loans averaging nearly $400. These and other findings from a report entitled, Perfect Storm: Payday Lenders Harm Consumers Despite State Law refute recent claims that an existing state law has protected consumers in the Sunshine State and...

Pages