Policy & Legislation
Battles rage across the country between the payday lending industry and coalitions of citizens groups who are increasingly insisting they will not accept 400 percent interest lending. Fifteen states plus the District of Columbia have outlawed triple-digit interest, and two states rejected them in ballot measures last November – Ohio and Arizona, which becomes the sixteenth state to put a stop to the predation through an interest rate cap as of July 2010.
Other than protecting military families with a 36% APR cap on small predatory loans, Congress has not yet moved to expand reforms across the country, and some big national banks are beginning to get into the business with loans that are virtually indistinguishable from storefront payday loans.
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- Congressional Proposal Would Curb Overdraft Abuses; Fed’s Rules Fall Far Short
February 2, 2010
Chart comparing Federal Reserve rules and proposed legislation to curb overdraft abuses.
- Testimony: Michael Calhoun testifies on overdraft before the Senate
November 19, 2009
Center for Responsible Lending president Michael Calhoun testified before the U.S. Senate Banking Committee on November 17, 2009, calling on support for reforming overdraft bank fees. Debit card overdraft fees are unjustifiable.
- Support H.R. 3904, the Overdraft Protection Act of 2009
October 29, 2009
Congresswoman Carolyn Maloney proposed the Overdraft Protection Act of 2009, which would reform out-of-control bank and credit union overdraft practices. Fees for debit card transactions and other types of overdrafts have reached well over $20 billion per year.
- The Overdraft Protection Act of 2009
October 29, 2009
Eric Halperin, director of CRL's DC office, submitted testimony to the Financial Services Committee of the U.S. House on H.R. 3904, the Overdraft Protection Act of 2009. He called the Act a crucial measure for protecting consumers from abusive bank overdraft fees, which have reached $23.7 billion per year. The Federal Reserve Board has failed to address the problem, and reform is urgently needed.
- Senate bill S 1799 would reform out-of-control overdraft practices
October 23, 2009
The Center for Responsible Lending strongly supports the FAIR Overdraft Coverage Act as it would represent a major advance in overdraft reform.