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Press Releases

July 14, 2016
Financial accountability and tough regulations are still needed, say 3 out of 4 likely voters. These two top line findings from a recent poll measured consumer satisfaction with Wall Street banks as well as a range of other financial services and providers including credit cards, debt collectors, payday loans and mortgages. The poll, jointly commissioned by the Center for Responsible Lending (CRL) and Americans for Financial Reform (AFR), reveals that these preferences are shared across partisan affiliations. When asked whether more financial regulation was needed, 69 percent of all...
July 6, 2016
A new national poll found that, by a margin of 3 to 1, voters strongly support restoring consumers' right to join together to take legal action against banks and other financial services companies that break the law. With the House of Representatives set to vote today on a multi-agency appropriations bill with riders that would strip the CFPB's authority to act on forced arbitration, voters of all political parties express majority support for federal action to restrict the practice. Consumer finance contracts now commonly require disputes to be settled through private arbitration instead...
June 30, 2016
Today the U.S. Department of Housing and Urban Development (HUD) announced changes to the Federal Housing Administration's Distressed Asset Stabilization Program that will help borrowers stay in their homes and support neighborhood recovery. Under the program, HUD will require third party buyers of FHA's non-performing loans to include principal reduction as part of their loan modification programs. This change builds on the Federal Housing Finance Agency's recent efforts in this area. Furthermore, HUD will create more favorable pricing for nonprofit organizations in the loan auctions....
June 29, 2016
New research report by The Institute for College Access and Success (TICAS) finds that North Carolina is one of three states across the country where community college students are notably shortchanged on federal student loans. The report, States of Denial: Where Community College Students Lack Access to Federal Student Loans, documents substantial disparities in loan access by state, race/ethnicity, and urban/non-urban status during the 2015-16 academic year. Close to half of North Carolina's community college students—53 percent—have no access to these loans. Whitney Barkley, an...
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 24, 2016
Updated estimate finds overdraft fees drain $14 billion from consumers annually, while analysis of complaint narratives finds the deck stacked against consumers. Financial institutions continue to engage in abusive overdraft practices, according to a new analysis by the Center for Responsible Lending (CRL). Each year, consumers pay nearly $14 billion in overdraft fees. If non-sufficient funds are included, the figure climbs to $17 billion. "CRL's analysis confirms that overdraft abuses continue, carrying an enormous annual price tag for consumers as a whole, and with devastating effects...
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-...

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