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CRL in the News

July 2, 2019 | By David Baumann | Credit Union Times

Overdraft services are essential for some credit union members, trade groups said, asking the CFPB not to take any additional action to restrict them.

July 2, 2019 | By Russ Wiles | Arizona Republic

Signature gatherers are starting to fan out across Arizona in an effort to curb a type of high-interest lending in the state.

Roughly 20 community groups on Tuesday kicked off a drive to qualify a measure that would curtail auto-title loans that feature high interest rates and, critics say, trap borrowers in a debt cycle.

July 2, 2019 | By Jonathan Stempel | Reuters

NEW YORK, July 2 (Reuters) - The attorneys general of New York and 23 other states plus Washington, D.C. have urged the Trump administration not to roll back a decade-old federal rule that limits the ability of banks to charge overdraft fees when customers spend more than they have in their accounts.

In a letter to Kathy Kraninger, director of the Consumer Financial Protection Bureau (CFPB), that was made public on Tuesday, the attorneys general, all Democrats, called the rule an “overwhelming success” that should not be watered down or scrapped.

June 28, 2019 | By Hayleigh Colombo | Indianapolis Business Journal

Kyra Bowerman was trapped in a vicious banking cycle.

The Indianapolis teacher and single mom of two would open a bank account. An expensive day care bill would come due at the same time she needed to pay for rent, utilities and food. The bank would charge an overdraft fee. The account would close.

June 28, 2019 | By Mike Landis | Consumer Law & Policy Blog

Yesterday, a unanimous panel of the U.S. Court of Appeals for the Seventh Circuit issued an opinion in which it concluded that the federal Higher Education Act (HEA) does not preempt state law claims against student loan servicers.

June 27, 2019 | By Alexandra Canal | Yahoo Finance

The student debt crisis is reaching a breaking point — and many grads are regretting their pricey degrees.

June 26, 2019 | By Jessica Dickler | CNBC

Often it’s the smallest charge that triggers the biggest fee.

Overdraft fees, which is what banks charge when transactions including debit card purchases cause your account to drop below zero, average $35 — nearly twice the size of the average $20 debit card transaction, according to the Center for Responsible Lending.

June 26, 2019 | By Ted Roelofs | Bridge MI

LUDINGTON—Four years ago, Merenda Vincent was desperate for cash.

She had an overdue car payment, along with a medical bill she couldn’t pay. Living on a monthly Social Security check of less than $1,000, she had no money in the bank.

June 25, 2019 | By Kevin Wack | American Banker

Startups that provide early access to workers’ earned wages are jostling over key aspects of pending California legislation that would create the nation’s first-ever regulatory framework for the nascent industry.

The state Senate passed a bill 35-0 last month, but interviews with executives in the fast-growing sector revealed big disagreements about the legislation. Those disputes reflect key differences in their firms’ business models.

June 21, 2019 | By David Lazarus | LA Times

Bank fees have gotten way out of hand — so much so that they now account for more than a third of revenue for an industry that once made its cash almost exclusively by lending money to customers.

And the worst of the worst are overdraft fees. They’re little more than cash grabs, serving no purpose but to fatten bankers’ already bulging pockets.

It’s time lawmakers put a halt to the practice. Or, barring that, we should follow the example of Britain, which just placed limits on how much can be charged by banks for exceeding available funds.