Press Releases

Washington, DC – New research released today by the Consumer Financial Protection Bureau (CFPB) on payday lending affirms what CRL has long found about the inherent defects of payday lending and shows that payday loans create a debt trap that makes borrowers worse off. Among the new findings: Nearly three-fifths of monthly borrowers in the CFPB study were recipients of government benefits, including Social Security—and these borrowers were more likely to be stuck in long-term debt. "This research validates all we know about the payday debt trap," said CRL President Mike Calhoun. "The cycle of

Joint statement The Leadership Conference on Civil and Human Rights, National Association for the Advancement of Colored People, National Coalition for Asian Pacific American Community Development, National Council of La Raza, National Fair Housing Alliance, National Urban League, and Center for Responsible Lending express serious concerns, say much needs to be fixed The new Senate proposal to reform the housing finance system would needlessly make mortgages more expensive and less available, announced civil rights groups today. The goal of housing finance reform is to create a safe housing

The Department of Education's proposed "gainful employment" rule is a step forward but falls short of protecting consumers from unaffordable debt created by predatory educational programs at for-profit colleges, according to the Center for Responsible Lending."The rule, as it stands now, does not adequately protect students," said Maura Dundon, senior policy counsel at CRL. "It allows too many students to emerge from for-profit institutions with no ability to repay their loans. No career-college student should ever say that 'going to college was the worst mistake in my life' because of her

Senate Banking Committee Chairman Tim Johnson and Ranking Member Senator Mike Crapo announced yesterday a bipartisan agreement on a plan to reform the housing finance system. The proposal has yet to be fully unveiled. "We appreciate Senators Johnson and Crapo's attention to this critically important issue," said Mike Calhoun, president of the Center for Responsible Lending. "The mortgage market is a $10 trillion industry and any changes to it will resonate through the entire economy. This is why any change must be considered carefully." "Overhaul of the housing finance system must ensure

The Center for Responsible Lending (CRL) applauds Bank of America for taking another important step that prevents costly overdraft fees for consumers. "Overdraft fees have a punishing impact on financially vulnerable Americans, often ousting them from the banking system altogether," said Gary Kalman, executive vice president of CRL. "CRL commends Bank of America for offering a more responsible approach to banking." Over the last 15 years, overdraft programs have evolved from an occasional courtesy to a practice designed to extract fees from consumers. Revenue from overdraft fees doubled

Experts at the Center for Responsible Lending applauded the CFPB for their aggressive action on the for-profit university ITT Tech. According to the CFPB, "ITT exploited its students and pushed them into high-cost private student loans that were very likely to end in default. The CFPB is seeking restitution for victims, a civil fine, and an injunction against the company." This marks an important step forward in abusive lending practices against students, according to CRL senior policy counsel Maura Dundon. "Abusive lending via student loans is particularly egregious practice," said Dundon.

During the annual State of the Union address, the President rightly called for housing finance reform that keeps the American Dream of homeownership alive for this and future generations. This Dream accounts for $10 trillion of our nation's economy and is a proven path towards upward mobility for millions of Americans. It is also why it is important to preserve the 30-year, fixed rate mortgage loan. While measurable market improvements are occurring, the recovery is not yet benefiting everyone. Any legislative reform needs to fix what is broken and build on what is working. Congress must

African Americans and Latinos pay higher interest rates on dealer-financed car loans than white buyers, even though people of color report more attempts to negotiate a better deal. According to a new report issued today by the Center for Responsible Lending (CRL), 39% of Latinos and 32% of African Americans reported attempts to negotiate their interest rate, compared to only 22% of white respondents—yet buyers of color received higher interest rates. The report, " Non-Negotiable: Negotiation Doesn't Help African Americans and Latinos on Dealer-Financed Car Loans," is based on information

Updated at 5:05 p.m. More good news: Wells Fargo Bank, US Bank and Fifth Third Bank announced today that they will discontinue their 225-300% annualized-interest-rate payday loan products. The announcements follow regulatory guidance finalized late last year by the Office of the Comptroller of the Currency (OCC), which supervises Wells Fargo and US Bank, and by the FDIC. The guidance advises banks under those agencies' supervision to ensure they are not making small-dollar loans their customers cannot afford to repay. The Federal Reserve, which supervises Fifth Third, also issued a supervisory

Good news for consumers: This morning Regions Bank announced it is discontinuing its payday loan product—loans with triple-digit interest rates. Data have consistently shown that payday loans made by banks, like those made by payday stores, lead to a cycle of repeat loans, making a borrower's financial situation worse instead of better. Regions Bank is one of a handful of depository institutions that in recent years has veered into payday lending. In recent months, both federal and state regulators have increased scrutiny around all types of payday lending, whether by banks, storefronts or