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Press Releases

October 3, 2014
For-profit college attendees are more likely to incur unmanageable student loan debt and be unable to graduate than their peers attending other schools, according to new research released today by the Center for Responsible Lending. African-American and Latino students in particular have a high risk of experiencing these poor outcomes at for-profit colleges, which have a long record of engaging in deceptive practices to pressure students to enroll. "Our research shows the urgent need for the Department of Education to issue a strong Gainful Employment rule regulating for-profit colleges...
October 2, 2014
The Second Circuit Court of Appeals affirmed an earlier decision by the District Court for the Southern District of New York. In August 2013, the State of New York issued cease-and-desist orders to more than 35 payday lenders offering and making internet loans to state residents at annual interest rates in excess of 300 percent – more than 10 times higher than what is permitted by New York state law. Beyond tribal lenders, these loans also included foreign ones with stateside headquarters where no interest rate caps existed for short-term loans. New York officials also alerted banks and...
September 30, 2014
The 2013 Home Mortgage Disclosure Act (HMDA) data confirms a persistent lack of access to the conventional mortgage market for African-Americans, Latinos, and middle class families. It is well documented that people of color and low wealth families received a disproportionate share of foreclosures due to being targets of mortgage loans with risky features that were not well underwritten. Today, these same populations are minimally participating in the mortgage market while it is relatively affordable due to historically low interest rates. As well, these borrowers are more likely to be...
September 26, 2014
"This proposed regulation, in conjunction with the important efforts of our military service organizations and advocates, veteran service organizations, and responsible lenders, would help ensure that our service members and their families are as far beyond the reach of financial exploitation as possible." Department of Defense, Press Release, September 26, 2014 Today, the Department of Defense released proposed rules to further protect service members and their families from predatory lending practices. Below is a summary of the changes. For more information or to speak with an...
September 26, 2014
Today, the Department of Defense released proposed rules to further protect service members and their families from predatory lending practices. If fully implemented, these rules will strengthen protections under the Military Lending Act and close loopholes unscrupulous lenders use to target military families with unconscionable high-cost loans. In response, Center for Responsible Lending president Mike Calhoun issued the following statement: The Department of Defense is taking effective action to protect service members and their families from abusive lending practices. No more...
September 24, 2014
This week, the Department of Education released new data about student loan default rates – indicating that for-profit college students continue to experience disproportionately high levels of default. Maura Dundon, senior policy counsel at CRL, issued the following statement: New data released yesterday by the Department of Education show that for-profit colleges, once again, account for a disproportionate share of the nation's student loan defaults. This poor performance further justifies the need for a strong "gainful employment" rule, which is currently being drafted by...
September 24, 2014
This week, CitiBank became the latest in a band of banks to unveil a new checking account – one without checks or overdraft fees. This move not only underlines the rapidly declining use of checks – but also awareness about the harmful financial effects bank fees have on consumers, especially economically vulnerable consumers. Rachel Anderson of CRL comments: Excessive and unpredictable bank fees have a punishing impact on financially vulnerable Americans. These fees can drain accounts and family wealth – and push some families out of the banking system entirely. Of these fees,...
September 18, 2014
This week, the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) announced lawsuits against two payday lenders. Both payday lending networks are accused of illegally extracting interest payments and fees from consumer accounts without consumer knowledge or consent. Both agencies have taken legal action to halt the lenders' activities. Gary Kalman, executive vice president of CRL, issued the following statement: This week's announcements by the FTC and the CFPB are only further evidence that payday lenders engage in abusive, predatory, and even illegal...
September 18, 2014
Yesterday, the Consumer Financial Protection Bureau (CFPB) announced that it intends to supervise the largest nonbank based auto lenders in a new "larger participant" proposed rule. The Bureau also announced that it has required indirect auto lenders to pay another $56 million to 190,000 consumers as redress for abusive practices, including dealer markup. According to the Federal Reserve Bank of New York, the lenders covered by the proposed rule accounted for more than half of the $355 billion auto loan market last year. Many lenders covered by the new CFPB rule are also deeply invested in...
September 17, 2014
Today, at a Consumer Financial Protection Bureau (CFPB) Indianapolis field hearing on auto lending practices, Center for Responsible Lending Senior Vice President Chris Kukla testified about abuses in the market. Kukla, who leads CRL's auto lending team, highlighted the auto dealer interest rate markup and a number of issues in the subprime auto loan market that have been the subject of recent media scrutiny. The text of Kukla's opening statement is below: Thank you, Patrice. Director Cordray, thanks also to you and your staff for holding this hearing, and for providing me the...

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