Press Releases

Contacts: (NCLC): Lauren Saunders, lsaunders@nclc.org; (202) 595-7845 (CFA): Tom Feltner, tfeltner@consumerfed.org; (202) 618-0310 (CRL): Ellen Schloemer, ellen.schloemer@responsiblelending.org; (919) 313-8528 (WASHINGTON, D.C.) Federal regulators need to stop banks and payment processors from helping internet and tribal payday lenders collect illegal payments, consumer and civil rights groups urged today. In a letter (see www.nclc.org/payment-processing) sent to federal bank regulators, the U.S. Department of Justice, and the Federal Trade Commission, the National Consumer Law Center

Even as payday lenders attempt to defend their defective product, a growing number of actions by federal and state regulators are cracking down on their predatory practices. In the past 10 days, four major federal agencies—the Federal Deposit Insurance Corporation (FDIC), the Consumer Financial Protection Bureau (CFPB), the Department of Justice (DOJ) and the Federal Trade Commission (FTC)—took significant actions against all types of payday lenders, including banks that support payday loans. Additionally, in recent months, numerous states have stepped up to rein in payday lending, including

Two new studies show that the Credit CARD Act of 2009 successfully reformed credit card practices, with one study estimating that the Act is saving households over $20 billion per year in previously-hidden fees. Both studies also found no evidence that lenders restricted credit card lending or increased interest or fees to offset the protections mandated by the Act. These results confirm that regulation of financial products can increase consumer protections and result in substantial savings. A report published by the Consumer Financial Protection Bureau (CFPB) today looked at data covering 85

In recent days, criticism of the likelihood of supplemental FHA funding has generated widespread news coverage. Yet it is equally true that what FHA has accomplished must also be acknowledged. Since 1934, FHA has served the nation as a reliable and successful program that has provided broad homeownership opportunities to successive generations. More recently FHA played a crucial role through the foreclosure crisis. When private capital fled, FHA remained in operation, keeping the housing market alive by insuring millions of mortgages. The proposed draw from the U.S. Treasury Department would

Five years after the start of the economic crisis, public opinion continues to solidly favor both strong regulation of banks and financial companies and the need for the Consumer Financial Protection Bureau, according to a national telephone survey of likely voters conducted this summer. Financial regulation has been a divisive issue in Washington; by contrast, the electorate is strikingly united. Regulating financial services and products is seen as either "important" or "very important" by over 90 percent of voters, the survey found. For the most part, that attitude transcends differences of

Payday loans remain a damaging debt trap for millions of Americans, according to two new chapters in the Center for Responsible Lending's (CRL) State of Lending series. Payday loans carry triple-digit annualized percentage rates (APR) and strip more than $3.4 billion in fees from Americans annually. Although payday lenders market these loans as a quick financial fix, CRL finds that 85% of loans by payday lenders go to borrowers who take out at least seven loans a year. Payday loans made by a few outlier banks also produce striking cycles of repeat loans. These new chapters—covering payday

CRL welcomes moves by the U.S. Department of Education ("Department") to ensure that career education programs provide a sound return on investment for both students and U.S. taxpayers. Students and displaced workers often look to career education programs to build the skills they need to gain employment in particular fields. Many of these programs are offered by for-profit colleges, although student tuitions are typically funded by federal financial aid. In 2011-12, the US government made approximately $28 billion in Title IV grants and loans to students attending for-profit colleges. The

New mortgage lending rules proposed today by federal regulators take a big step forward in strengthening the U.S. housing market and economy. In revised proposed rules defining "qualified residential mortgages" (QRM), regulators crafted standards that address key causes of the past housing crisis and will prevent future abusive lending. At the same time, the newly-proposed rule will protect access to credit for many homebuyers by not mandating downpayment levels. Research from the UNC Center for Community Capital and the Center for Responsible Lending has shown that low downpayment home loans

Last Friday, a Tennessee-based online payday lender stopped making loans nationwide after a crackdown by New York regulators. The state attorney general earlier asked major banks to cut ties with payday lenders making illegal online loans to New York residents. "This is a tremendous victory for families in every state," said Uriah King, CRL's vice president of state policy. "Contrary to payday lender spin, illegal lending can be stopped—and states are leading the way." Several states have targeted illegal payday loans in recent months, including Arkansas, Maryland, Pennsylvania and West

Earlier today Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement issued his fifth and final report detailing progress by the five participating servicers regarding their consumer relief obligations under the Settlement through June 30. The monitor has verified the data provided by one servicer (Ally/ResCap) as fulfilling settlement consumer relief obligations, and is evaluating two others (Bank of America and Chase) for completion.The servicers report that 643,726 borrowers have benefited from consumer relief totaling $51.33 billion, resulting in nearly $80,000 of assistance per