In our comment, we contend that 1) the bulletin addresses a gap in supervision and is the proper means for ensuring regulation of BNPL lenders; 2) the guidance appropriately encompasses the majority of products offered by BNPL lenders; and 3) Oregon is aligned with other states working to protect BNPL borrowers. Finally, we offer some brief recommendations for further investigation...
The Center for Responsible Lending (CRL) and National Consumer Law Center (NCLC) filed an amicus brief supporting Oregon’s authority to enforce its interest-rate protections against loans made to Oregon residents by out-of-state, state-chartered banks. The case, National Association of Industrial Bankers, et al. v. O’Day, concerns House Bill 4116, legislation that overrides the federal interest-rate preemption provisions of the Depository...
Federal Regulators Must Stop Predatory Lenders from Acquiring National Banks and Exporting High-Cost Loans to More Working Families
Harms of Opp-Fi Bank’s High-Cost Loans Recently Were Highlighted in CRL Report Washington, DC – Federal banking regulators must not allow predatory lenders to acquire a national bank charter and expand their ability to offer high-cost loans that cause long-term financial distress for working people struggling to manage today’s affordability challenges, said the Center for Responsible Lending (CRL). Opportunity Financial...
Oregon lawmakers consider bill to curb predatory lending practices
State lawmakers are considering a bill aimed at addressing predatory lending schemes that affect thousands of residents each year. The proposed legislation focuses on lenders like OppFi, which reportedly charges Oregonians up to 195% interest on loans ranging from $500 to $5,000. A recent report by the Center for Responsible Lending (CRL) highlights the issue, pointing to what they describe...
Oregon State Legislature Passes Bill to Stop Predatory High-Interest Loans
The Oregon Senate passed House Bill 4116, which stops online lenders from exploiting a loophole in federal law to charge consumer loan interest rates above Oregon’s 36% cap through “rent-a-bank” schemes. The bill now moves to Governor Tina Kotek’s desk to be signed into law. “Predatory ‘rent-a-bank’ loans have high rates of interest, defaults, and repeat borrowing. The business model...
New Oregon Bill Aims To Curb Predatory Lending
A new report by the Center for Responsible Lending examines lender OppFi, which charges Oregonians up to 195% interest on loans of $500 to $5,000. According to Ellen Harnick, the center’s executive vice president and director of state policy, such lenders target desperate borrowers and trap them in cycles of debt, where interest paid can equal the original loan amount...
Payday lenders charge exorbitant fees to borrowers without assessing their ability to repay, and the annual interest rates on these loans are in the triple digits.
A few high-cost lenders are evading state consumer protections through rent-a-bank schemes. Through these sham arrangements, these companies are exploding right through the interest rate limits that most states have put in place for good reason, to protect people from high-cost debt traps that drain them of their hard-earned income. In the following states, payday lenders are using banks, which...
The Ongoing Fight Over Payday Loans
The federal Consumer Financial Protection Bureau changed its tune on payday loans when the country changed presidents. The Center for Responsible Lendingnoticed. CRL's Ezekiel Gorrocino visits with details of the current situation with payday loans.
This written testimony focuses on three key areas of concern in support of HB 2588 to protect Oregonians from abusive practices by student education loan servicers: Oregon’s student loan debt crisis deepens the racial wealth gap and harms older Oregonians Abuses by student loan servicers prolong and deepen the student loan debt crisis, further increasing the racial wealth gap and...