Press Releases

Bill Creates Obstacles to Enforcing Fair Lending Laws The U.S. House of Representatives voted last night to pass H.R. 1737, the Reforming CFPB Indirect Auto Financing Guidance Act. The bill requires the Consumer Financial Protection Bureau to rescind its warning to lenders who provide auto loans through dealerships that certain practices risk violating fair lending laws. Auto dealers have discretion...

A new policy brief from the Center for Responsible Lending (CRL) shows that most consumers would pay lower interest rates if car dealers stopped getting paid through increases in the interest rate. According to industry data, as many as 70% of borrowers would pay a lower interest rate if the car lending industry shifted to a flat fee compensation model...

A key mortgage lending reform – which would be rolled back by a bill coming up for a vote in the House of Representatives next week – commands the support of an overwhelming majority of voters, according to a poll conducted this summer by Lake Research on behalf of Americans for Financial Reform and the Center for Responsible Lending. New...

Predatory Fees Drained from Ohio Have Doubled in Past 10 Years According to a new report released today by the Center for Responsible Lending, payday and car title loans continue to burden Ohioans with unaffordable, triple-digit interest rate debt, draining millions of dollars a primarily from low-income people. These findings are the first look at the Ohio payday and car...

Abusive College-Bank Marketing Agreements to be Reined In Final rules issued today from the Department of Education will protect college students from being pushed into high-fee bank accounts by their colleges, banks and bank affiliates. The rules will ban overdraft and other bank fees on some accounts jointly marketed by these financial entities. It will also require that the accounts...

Today, the Consumer Financial Protection Bureau released a proposal to rein in the widespread use of clauses in financial services contracts that ban class action lawsuits by groups of consumers who have been harmed. They stopped short of also banning binding mandatory arbitration provisions. CRL Policy Counsel Lisa Stifler offered the following remarks: When consumers are deceived or cheated when...

A new policy brief released today by the Center for Responsible Lending provides a state-by-state snapshot showing predatory payday and car title lenders increasingly moving into installment loans. The lenders are continuing to offer unsafe loans with excessive interest rates, which are carefully designed to trap borrowers in a cycle of debt they cannot escape, and actively seeking to expand...

Today, the Consumer Financial Protection Bureau's (CFPB) and Department of Education (DOE) issued a new report on student loan servicing that confirms concerns that the student loan servicing system is both hurting borrowers and taxpayers and in need of swift regulatory reform. Maura Dundon is Senior Policy Counsel at the Center for Responsible Lending and an expert on student lending...

Yesterday, the federal Consumer Financial Protection Bureau (CFPB) announced that Fifth Third Bank will pay $21 million back to consumers as a part of two investigations into the institution’s practices. The bank will pay $18 million to African American and Latino consumers for engaging in auto dealer markups a discriminatory lending practice that resulted in borrowers of color paying more...

This week, North Dakota Senator Heidi Heitkamp introduced the Private Education Loan Refinancing Act of 2015, which would provide relief to students burdened with risky or expensive loans. The bill would create incentives for lenders to work with borrowers to refinance and modify loans to help borrowers avoid default. In the mortgage market, loan modification and refinancing has helped many...