CRL in the News
"For folks who have higher debt loads, they're actually getting their wages garnished or seized at really high rates," according to Lucia Mattox, senior policy manager at the Center for Responsible Lending. "Currently at the federal level, only $217.50 is protected in someone's weekly paycheck and that bill hasn't been updated since the late '60s."
“This is the first step in overhauling our federal student aid system and understanding that the student debt crisis has been a drastic burden from many people, especially people of color,” said Jaylon Herbin, outreach associate and policy manager for the Center for Responsible Lending.
Center for Responsible Lending Policy and Outreach Manager Jaylon Herbin had 60,000 dollars in loans. “Yesterday’s announcement alleviated about 10,000 dollars worth but there’s still a lot that I still have to pay off,” Herbin said. Herbin supports more loan forgiveness and he’s not alone. A recent NewsNation poll found 64 percent of Americans are at least somewhat supportive of forgiving up to 100 thousand dollars of student debt. “50,000 dollars would’ve eliminated about 76% of the borrowers student debt,” Herbin said.
“(BofA) is miles ahead of what Wells and Chase have done. Both of them did some reforms, we certainly applaud those changes, but they are still charging the $35 fee,” said Mike Calhoun, head of the Center for Responsible Lending and a long-time critic of overdraft fee practices. Calhoun sits on an advisory board that includes several other consumer advocacy groups that advised BofA on the changes.
Taylor Roberson, federal policy counsel at consumer advocacy group Center for Responsible Lending, told DW: "One of the most positive aspects of the product has to do with the potential for consumers who pay on time to have that payment history positively recorded on their credit reports. And that's perhaps where the benefits end." Roberson explained how at present, consumers are not rewarded by credit rating agencies for paying BNPL loans on time, partly because these lenders are not required to report their data like other lenders.
Financial institutions rake in billions annually from overdraft fees. Some banks and credit unions recently have curbed or ended these fees for their customers — for which they should be commended — but many more depository institutions quietly continue overdraft practices that, at their best, nickel-and-dime consumers and, at their worst, cause devastating, lasting harm to financially vulnerable families. Overdraft charges are too important to the bottom line to expect that urging these institutions to “do the right thing” will suffice.