Press Releases

CFPB is required to consider comments on its plan, which would eliminate protections from 300%+ APR payday loan debt traps House Oversight and Reform subcommittee hearing held on the proposal WASHINGTON, D.C. – The Center for Responsible Lending (CRL), as part of a coalition of civil rights, consumer, and labor groups, submitted an official comment letter to the Consumer Financial Protection Bureau (CFPB), excoriating CFPB Director Kathy Kraninger’s plan to gut a 2017 CFPB rule that was issued to stop payday loan debt traps. The coalition’s comment letter is a comprehensive rebuttal to

WASHINGTON, D.C. – Today, Eric Blankenstein, the Consumer Financial Protection Bureau’s policy director for supervision, enforcement, and fair lending, has resigned following controversy over racist blog posts from 2004 in which he used racial slurs for African-Americans and claimed that most hate crimes reported by people of color were hoaxes. Center for Responsible Lending Executive Vice President Nikitra Bailey released the following statement: The CFPB’s decision to move the Office of Fair Lending out of Enforcement signaled its lack of commitment to ensuring a fair and inclusive financial

WASHINGTON, D.C. – The Center for Responsible Lending (CRL) has announced support for legislation introduced today by Senator Dick Durbin (D-Ill.), the Student Borrower Bankruptcy Relief Act of 2019. This bill would eliminate the section of the federal bankruptcy code that makes student loans nondischargeable. CRL Senior Policy Associate Cheye-Ann Corona issued the following statement: While many graduates strive to repay their debt in a timely manner, thousands of others struggle to make ends meet. That is why it’s important to have legislation that will provide vulnerable student loan

WASHINGTON, D.C. – Today, Center for Responsible Lending (CRL) Executive Vice President Nikitra Bailey spoke before the House Financial Services Committee’s subcommittee on Housing, Community Development and Insurance to testify on the urgent need to address racial discrimination within the nation’s housing finance system. The title of the hearing was called, “A Review of the State of and Barriers to Minority Homeownership.” In her testimony, Bailey specifically focused on the homeownership rate gap between whites and people of color, the racial wealth gap and policy solutions to create equity

WASHINGTON, D.C. - Today, Kathy Kraninger, the Director of the Consumer Financial Protection Bureau (CFPB), announced a long-awaited proposed rule governing the $11.5 billion debt collection industry that includes 7,700 collection agencies nationwide. It is also an industry that ranks among those most reported complaints received by the CFPB and the Federal Trade Commission (FTC). As announced, debt collectors would be able to place up to seven unanswered calls each week to consumers. Once that limit is reached, the collector could not resume communications until a week had passed. If more

WASHINGTON, D.C. – At 3:00 p.m. ET this afternoon, a House Financial Services subcommittee will convene a hearing entitled “Ending Debt Traps in the Payday and Small Dollar Credit Industry. A live-stream of the hearing along with a full witness list and background information are available on the Committee’s website. Among those testifying is Diane Standaert, director of state policy and executive vice president at the Center for Responsible Lending (CRL), who issued the following statement: Payday loans are debt traps by design, carrying 300% APR on average. They perpetuate economic

Tomorrow (Tuesday) a House Financial Services subcommittee will hold a hearing on the bill, which would establish a bulwark to defend Americans from predatory lending, and also on the CFPB’s move to roll back consumer protections on payday loan Click here for this map, showing the APR of a typical payday loan in those states without strong interest rate caps. For example, the typical payday loan in Illinois has an APR of approximately 400%. WASHINGTON, D.C. – The Center for Responsible Lending (CRL) has announced support for legislation introduced today by Senator Dick Durbin (D-Ill.), the

WASHINGTON, D.C. – Today, the Senate confirmed Mark Calabria as the director of the Federal Housing Finance Agency (FHFA) –the federal regulator that oversees Fannie Mae and Freddie Mac – led by acting director Joseph Otting since early January. Calabria, who has served as chief economist for Vice President Mike Pence, was nominated to head the FHFA by the Trump Administration in December 2018. Nikitra Bailey, executive vice president with the Center for Responsible Lending made the following statement: As head of the FHFA, Mr. Calabria will have a critical role in shaping the U.S. housing

WASHINGTON, D.C. – Today, the U.S. House Committee on Financial Services held a full committee hearing entitled, “The Fair Housing Act: Reviewing Efforts to Eliminate Discrimination and Promote Opportunity in Housing.” The hearing examines fair housing laws, new online platforms in the housing market, and the Department of Housing and Urban Development’s (HUD) enforcement of the landmark federal Fair Housing Act under the current Administration. Center for Responsible Lending Executive Vice President Nikitra Bailey released the following statement: As April marks the 51st anniversary of the

WASHINGTON, D.C. – Today, the Brookings Institution published a new research report by the Center for Responsible Lending (CRL) that explores how online programs from for-profit institutions negatively affect low-income students, particularly African Americans, veterans, and female heads of household. The report also addresses the trend of for-profit colleges going exclusively online or partnering with non-profit institutions to run their online programs. Read the report. Among the report's key findings: For-profits colleges enroll an outsized share of students that take only online courses