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Press Releases

September 17, 2014
Yesterday, the Consumer Financial Protection Bureau (CFPB) sued Corinthian Colleges, Inc., the for-profit college company. The consumer protection agency claims that Corinthian engaged in deceptive and predatory lending practices in an effort to recruit students, get them to take out private student loans, and then to collect on those loans. Maura Dundon, senior policy analyst at CRL, issued the following statement: Corinthian Colleges, one of the largest for-profit colleges companies in the United States, has long engaged in reprehensible practices that leave students with...
September 11, 2014
In a letter sent today, the Center for Responsible Lending (CRL) along with several other groups - Legal Aid Society of the District of Columbia, District of Columbia Consumer Rights Coalition, Consumers Union, National Association of Consumer Advocates, National Consumers League, and U.S. PIRG - asked Councilmember Vincent Orange, the Chair of the Council's Committee on Business, Consumer and Regulatory Affairs, to schedule a hearing and committee markup on legislation designed to protect consumers from unscrupulous debt buyers' abusive collection tactics. The group also urged other members...
August 12, 2014
Civil rights, consumer, and community groups lauded the Office of the Comptroller of the Currency (OCC) for issuing strong guidance this week regarding banks' selling of charged-off consumer debts to debt buyers. The groups urged the agency to also take the next step and issue strong regulations to ensure that national banks do not continue to facilitate unfair, deceptive, and abusive debt collection practices. "This guidance is one of the first actions taken by a federal regulator to address the way banks sell off their old debt," said Lisa Stifler of the Center for Responsible Lending...
August 5, 2014
The New York Times reported that the US Department of Justice has issued a subpoena to General Motor's finance subsidiary. The DOJ subpoena specifically asks for information about auto loan underwriting criteria and how loans are securitized and sold to investors. The same NYT article noted that the office of US Attorney for the Southern District of New York is also investigating the subprime auto lending market. US attorney Preet Bharara is reviewing the soundness of auto loan securities and whether the credit-worthiness of borrowers was accurately conveyed to investors. In response to...
August 1, 2014
Today, the Consumer Financial Protection Bureau released a report highlighting the need for robust reform on bank overdraft practices. In response Center for Responsible Lending president Mike Calhoun comments: Today's release underscores the urgent need for reform on banks fees – particularly the practice of tacking on fees on debit card transactions that could be denied at no cost. A report by the Consumer Financial Protection Bureau found that overdraft fees on debit cards typically exceed the amount of the overdraft itself. The CFPB's examination found that the median debit...
July 31, 2014
Today, the Consumer Financial Protection Bureau released a report highlighting the need for robust reform on bank overdraft practices. In response Center for Responsible Lending president Mike Calhoun comments: Today's release underscores the urgent need for reform on banks fees – particularly the practice of tacking on fees on debit card transactions that could be denied at no cost. A report by the Consumer Financial Protection Bureau found that overdraft fees on debit cards typically exceed the amount of the overdraft itself. The CFPB's examination found that the median...
July 30, 2014
Washington, D.C. – Today, the Consumer Financial Protection Bureau and 13 state attorneys general issued an enforcement action against Colfax Capital Corporation and Culver Capital, LLC, known as Rome Finance, for targeting servicemembers and consumers with expensive debt that was not properly disclosed and for attempting to collect illegal debts. The Consumer Federation of America, Americans for Financial Reform, National Association of Consumer Advocates, Center for Responsible Lending, and the National Consumer Law Center (on behalf of its low-income clients) issue the...
July 24, 2014
Today, the Consumer Financial Protection Bureau released a proposed rule to improve the Home Mortgage Disclosure Act (HMDA). In response Center for Responsible Lending president Mike Calhoun comments: We congratulate the Consumer Financial Protection Bureau for the agency's continued commitment to responsible lending. This is an important step forward in using data and transparency to promote fair lending. Since the Home Mortgage Disclosure Act was enacted, it has provided critical information to both the public and financial sectors – information that has been used to identify...
July 15, 2014
Today, the US Department of Justice announced a $7 billion settlement with Citigroup; the financial institution will pay a record-setting $4 billion penalty for misleading investors about securities that included toxic mortgages. Center for Responsible Lending executive vice president Debbie Goldstein comments on the settlement below. CRL is a nonprofit research and advocacy organization focused on consumer lending. In December 2006, CRL published Losing Ground, the first comprehensive, nationwide review of millions of subprime mortgages and predicted the subprime mortgage crisis that...
July 10, 2014
Today, the Consumer Financial Protection Bureau (CFPB) took action against the Texas-based financial services company ACE Cash Express. The agency found that the company employed abusive and illegal tactics to collect debts and trap borrowers into a cycle of debt. ACE will pay $5 million in refunds to borrowers and $5 million in fines. Center for Responsible Lending president Mike Calhoun responds: We are gratified that the Consumer Financial Protection Bureau is using its supervisory authority to take enforcement action against abusive, predatory lenders. Today's development is...

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