CRL highlights the harms consumers face in the District of Columbia, which are similar to those associated with storefront payday loans. CRL offers its recommendations to the District of Columbia to consider as it moves forward with investigating and addressing payday loan apps. We recommend developing guidance to affirm the status of payday loan apps as credit under existing law...
Payday, car-title, and similar high-cost loans, typically with interest rates of 100% APR and higher, trap people in crippling long-term debt. CRL advocates for regulators to require lenders to verify borrowers can afford to repay a loan before that loan is issued. CRL also advocates for interest rate caps of no higher than 36% APR and for enforcement of current usury laws.
Filter Results
Read our new analysis of borrowers caught in an unaffordable cycle of refinancing, including instances of refinancing two to three months after taking out an OppFi loan.
A recent study (commissioned by EarnIn) analyzing data from EarnIn’s Cash Out product has been promoted as evidence that the payday lending app marketed as earned wage access (“EWA”) improves workers’ financial stability by increasing income. A closer reading of the study, however, reveals the opposite: the reported income increase is likely driven by workers supplying more labor, while the...
Minnesotans had been charged a 220% APR on the typical storefront payday loan, but this predatory form of credit ended in 2024 when a strong interest rate cap went into effect.
Nadine Chabrier, CRL Senior Policy Counsel, teamed up with Molly Gallagher, Statewide Poverty Action Network Policy Lead, to talk to Washington state representatives about the importance of examining BNPL policy during the affordability crisis. Watch the full video to see Molly Gallagher's presentation and more.
Original research about Colorado borrowers shows expensive credit is already burying people in debt, debunking argument for legalizing even costlier credit.
Nearly 200 labor, consumer, civil rights, and community organizations joined together to express opposition to any bill, similar to last year’s H.R. 7428 (Steil), that exempts earned wage payday loans from the Truth in Lending Act (TILA). Doing so would endorse a form of loan that makes workers pay to be paid and would facilitate new evasions by payday lenders...
A panel of the U.S. Circuit Court of Appeals for the Tenth Circuit today held that Colorado can protect its residents from out-of-state loans from state-chartered banks that carry interest rates above what is permitted under Colorado law. Predatory rent-a-bank lenders charging rates up to 199% APR or higher have taken advantage of federal laws that allow banks to charge...
Payday loan apps draw borrowers into a pattern of repeated borrowing and a succession of fees that pull from already-stretched paychecks, creating demand for the next loan.
Payday loan app companies try to evade state credit laws by promoting a legal fiction: they claim that these loans are not loans. As state regulators and attorneys general investigate and challenge industry violations of credit law, these lenders have lobbied state legislatures for exemptions from those laws. This state law chart serves as a shorthand guide to state regulation...