CRL in the News
"They claim that these loans are different, are safer, are more affordable, but the reality is they carry all the same markers of predatory loans," said Diane Standaert, director of state policy at the Center for Responsible Lending. These markers include their high cost, the ability of lenders to access borrowers’ bank accounts, and that they are structured to keep borrowers in a cycle of debt. "We see all of those similar characteristics that have plagued payday loans," Standaert said.
Senator Kamala Harris, a California Democrat and potential 2020 presidential contender, has a Trump-size tax plan of her own.
It’s unclear exactly what led to the situation in Detroit, although the tough economic situation for the city and its residents in recent years has certainly contributed.
Fifty consumer groups are calling on the Consumer Financial Protection Bureau to withdraw a plan allowing fintech firms to test financial disclosures on consumers.
The groups argue the CFPB’s "disclosure sandbox" proposal, which would provide certain legal safe harbors to participating companies, exceeds the CFPB’s statutory authority and would put consumers at greater risk.
Thousands of Marriott workers around the country are on strike, complaining that stagnant wages and unsteady hours have made it difficult to stay afloat. At a time when they are under particular pressure, the credit union may be adding to their struggles.
The Consumer Financial Protection Bureau's decision to stop examining financial firms for compliance with the Military Lending Act has sparked pushback not only from lawmakers and consumer advocates but also from the Defense Department and every major group representing military service members.
How much has the market learned from the financial crisis a decade back? And are we prepared for the next crisis?
Looking specifically at the housing market, Michael Calhoun, President of the Brookings Center for Responsible Lending said in a recent paper that while regulatory safeguards that were put in place subsequent to the crisis have made today’s housing market much safer and resilient, “more could have been done to aid homeowners in the crisis and work remains to provide families with sufficient affordable, sustainable housing for today and in the coming years.”
Last October, the Consumer Financial Protection Bureau released its payday and car-title lending rule. The agency, under the leadership of Richard Cordray, spent five years developing these safeguards, which included input from lenders, faith leaders, veteran and military organizations, civil rights groups, consumer advocates, and constituents from across the country.
When LendMark started offering subprime loans to California residents a few years ago, it noticed something odd: a vast and growing number of big loans offered by rival firms at interest rates of 100% or higher, and relatively few smaller, cheaper loans.
To executives at the suburban Atlanta company, which entered the state by buying loan storefronts from a competitor, it didn’t make sense.
U.S. Bank recently introduced a new small-dollar loan product. By the bank’s own description, it’s a high-cost product, at 70-88% APR.