Bank Regulators’ Proposal to Modernize CRA Rules

WASHINGTON, D.C. – Federal banking regulators today announced proposed rules to revise and modernize the Community Reinvestment Act (CRA). In response, Mike Calhoun, president of the Center for Responsible Lending (CRL), made the following statement: Federal banking regulators today issued a notice of proposed rulemaking to modernize the rules that implement the Community Reinvestment Act (CRA). This represents a significant step forward in ensuring that financial institutions address the credit needs of Asian, Black, Latino, Native American, rural and other underserved communities. The

Consumer Advocates Urge CFPB to Protect Consumers From “Junk Fees”

WASHINGTON – In response to the Consumer Financial Protection Bureau’s (CFPB) call for public input on how to save Americans billions in junk fees charged by financial companies, leading consumer advocacy organizations submitted an extensive comment letter detailing junk fees across a wide range of consumer financial products and services. The letter was submitted by Americans for Financial Reform (AFR), the Center for Responsible Lending (CRL), Consumer Federation of America (CFA), the National Community Reinvestment Coalition (NCRC), and National Consumer Law Center (NCLC) (on behalf of its

CRL Financial Literacy Month Video Shows Why APR Matters and Why Payday Lenders Resist Clearly Disclosing It

Hiding Ability to Compare True Costs of Loan Options Lets Lenders Take Advantage of Consumers WASHINGTON – The Center for Responsible Lending (CRL) today released a video for Financial Literacy Month to educate the public on why readily providing the APR (annual percentage rate) of payday loans is essential to providing financial fairness for consumers, and to urge Congress and states that still have payday lending to pass a 36 percent rate cap for annual interest on these loans. Payday loans – also known as cash advance loans – cost American families more than $4 billion annually. Payday

CFPB Director Chopra’s Actions to Protect Consumers Deserve Praise, Not Criticism, at Congressional Hearings

WASHINGTON, D.C. – Starting today at 10 AM ET, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testifies before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on the CFPB’s Semiannual Report to Congress. He will also testify on the report before the House Committee on Financial Services tomorrow at 10 AM ET. “Director Chopra’s actions to protect consumers from predatory financial practices deserve praise, not criticism, from Congress,” said Mike Calhoun, president of the Center for Responsible Lending. “American families need protections from abusive

CRL Statement on Department of Education’s Recent Changes to Student Loan Programs

WASHINGTON, D.C. – The U.S. Department of Education announced today changes to its income-driven repayment (IDR) programs that will allow thousands of borrowers to receive immediate relief. About 40,000 borrowers are also scheduled to have their loans cancelled through the Department’s Public Service Loan Forgiveness (PSLF) program. In response, Jaylon Herbin, outreach and policy manager at the Center for Responsible Lending (CRL), made the following statement: We are pleased that thousands of borrowers will benefit from this long-awaited policy change that will finally provide low-income and

CRL Statement on Nomination of Michael Barr as Federal Reserve Vice Chair of Supervision

WASHINGTON, D.C. –The Biden Administration announced today that it will nominate Michael Barr as Vice Chair for Supervision at the Federal Reserve. In response, Mike Calhoun, president of the Center for Responsible Lending (CRL), made the following statement: More than ever, our country needs knowledgeable financial regulators at the helm of our country. Michael Barr is a well-qualified choice for Vice Chair for Supervision at the Federal Reserve. Mr. Barr has a record of standing up for regulations – like the Community Reinvestment Act and overdraft protections – that promote financial

CRL Statement on Extension of Federal Student Loan Payment Pause

WASHINGTON, D.C. – The Biden Administration announced today that it will extend the federal student loan payment pause until August 31st, 2022. In response, Jaylon Herbin, outreach and policy manager at the Center for Responsible Lending (CRL), made the following statement: The latest extension of the federal student loan payment pause signals the need for a more permanent solution – specifically, widespread student loan cancellation – for the nation’s $1.7 trillion student debt crisis. While we applaud the Administration for allowing borrowers who were in delinquency or default to receive a

Banks, Credit Unions and Consumer Groups Call for Passage of Bipartisan Solution to Close ILC Loophole

Washington, D.C. — A broad coalition of bank and credit union associations and consumer organizations submitted a letter today to the U.S. House Committee on Financial Services urging passage of the Close the ILC Loophole Act, introduced by Representatives Chuy Garcia (D-IL) and Lance Gooden (R-TX). The ILC loophole allows large technology companies — such as Japanese e-commerce firm Rakuten, whose primary business is monetizing consumer data — and other commercial firms to own and operate what is essentially a full-service FDIC-insured bank, and do so entirely free from the regulatory

Income-Share Agreements Burden Women, Students of Color with Unfair Terms and Unforeseen Costs

WASHINGTON, D.C. — Borrowers using both federal student loans and Income-Share Agreements (ISAs) could pay as much as 25 percent of their discretionary income in repayment for a decade, according to a report published today by the Center for Responsible Lending (CRL). The report also found that ISA underwriting criteria could lead to negative impacts for women and people of color. Marketed as innovative alternatives to student loans, ISAs are private loan products that allow lenders to require students to make payments in exchange for a percentage of their future earnings for a fixed number of

CRL Praises Citigroup for Eliminating Overdraft Fees

Calls for federal regulators to protect all Americans from harmful overdraft fees WASHINGTON, D.C. – Citigroup (Citi), one of the five largest banks in America, announced yesterday it will end all overdraft fees and non-sufficient fund fees (aka bounced check fees). It is the biggest bank thus far to do this. Center for Responsible Lending (CRL) Policy and Litigation Counsel Nadine Chabrier issued the following statement: Overdraft fees kick people when they are down. Their costs are borne by financially vulnerable consumers. These fees disproportionately harm Black and Latino Americans with a