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Press Releases

November 12, 2019
New legislation would protect people from the financial quicksand of high-interest loans First bill to extend Military Lending Act’s rate cap protection to all Americans Learn more about this map, showing the APR of a typical payday loan in those states without strong interest rate caps. For instance, in Illinois it is 404% and in Wisconsin 574%. WASHINGTON, D.C. – The Center for Responsible Lending (CRL) announced support for the Veterans and Consumers Fair Credit Act, which is being introduced today in the U.S. House of Representatives by Congressmen Jesús “Chuy” García (D-IL) and...
November 7, 2019
WASHINGTON, D.C. - A coalition of 61 consumer, civil rights, and community groups today sent letters to three federal bank regulators urging them not to allow their banks to help payday lenders evade state interest rate limits. The groups sent separate letters to the Federal Deposit Insurance Corp. (FDIC), which regulates the only banks currently involved in rent-a-bank schemes; the Office of the Comptroller of the Currency, which regulates a national bank that has been in talks with a payday lender; and the Board of Governors of the Federal Reserve System, whose banks so far do not appear to...
October 28, 2019
WASHINGTON, D.C. – U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson announced today that his agency reached an agreement with the U.S. Department of Justice (DOJ) on the use of the False Claims Act for Federal Housing Administration single family loans. Center for Responsible Lending President Mike Calhoun made the following statement: CRL applauds HUD and the DOJ for working together and signing a memorandum of understanding addressing how the agencies will confer on False Claims Act prosecutions. CRL also supports FHA’s efforts to revise the annual lender...
October 25, 2019
Continuing state action will hasten fair practices across the industry DURHAM, N.C. – A new wave of state legislation passed in 2019 continues the trend of states addressing abuses in the student loan servicing industry, according to a report by the Center for Responsible Lending (CRL) titled, Stepping Up: States Move to Hold Student Loan Servicers Accountable. The analysis notes that, since 2015, thirteen states have passed reforms to address the practices of companies that provide the crucial link between student borrowers and successful repayment of their loans. Those states include...
October 18, 2019
WASHINGTON, D.C. – The U.S. Supreme Court said today that it will take up Seila Law LLC v. Consumer Financial Protection Bureau (CFPB), a case attempting to undermine the independence of the nation’s consumer protection watchdog.  Seila Law LCC is pushing the Supreme Court to give President Trump influence and control over how the CFPB oversees the financial services industry. Specifically, the lawsuit contends that the structure of the CFPB is unconstitutional because it only allows the President to remove the CFPB Director for-cause. Congress, however, established the independent CFPB to...
October 17, 2019
WASHINGTON, D.C. – Center for Responsible Lending Executive Vice President Nikitra Bailey released the following statement today on the passing of U.S. Congressman Elijah Cummings, Chairman of the House Committee on Oversight and Reform: We are saddened by the passing of Chairman Elijah Cummings. He was a steadfast leader who served his community and country with passion and conviction. For consumers, he was the voice who championed reforms to protect families from abusive payday lenders, predatory for-profit colleges, and housing discrimination. His legacy is a shining example of what...
October 15, 2019
WASHINGTON, D.C. – Today, the U.S. House of Representatives Committee on Education and Labor introduced the College Affordability Act, a bill to lower the costs of college for students and improve the quality of education. The bill includes important provisions to make quality higher education more accessible and affordable for students and families, including indexing the Pell Grant to inflation, extending federal aid eligibility to DACA recipients and Pell Grants to individuals who are incarcerated, creating a path to debt-free community college through the America’s College Promise...
October 11, 2019
WASHINGTON, D.C. – The Financial Accounting Standards Board (FASB) is implementing a new Current Expected Credit Loss (CECL) methodology for estimating allowances for credit losses on financial institutions. This standard requires lenders to expense the lifetime expected losses of a loan at origination. Capital held by lenders covers unexpected losses in a stress scenario. Center for Responsible Lending President Mike Calhoun made the following statement: As proposed, CECL creates a significant disincentive for lenders to originate loans to low- and moderate-income families and...
October 7, 2019
2008 Crisis Echoes Through American Politics As Americans Seek More WASHINGTON, DC – As candidates vie to set the agenda for the next presidency, Democratic primary voters in Iowa, New Hampshire, Nevada, and South Carolina strongly support a tough approach to oversight and reform of Wall Street, according to a new poll conducted by the bipartisan team of Lake Research Partners and Chesapeake Beach Consulting. The views of these voters, whose decisions will influence the early trajectory of the race for the Democratic nomination, align with Democrats and independents broadly, and on many...
October 2, 2019
WASHINGTON, D.C. – Strong majorities across political parties show concern about the level of student debt in the United States and oppose the Department of Education’s and the Consumer Financial Protection Bureau's (CFPB) recent actions to weaken protections for students, according to a new poll released by Americans for Financial Reform (AFR) and the Center for Responsible Lending (CRL). The poll was conducted by the bipartisan team of Lake Research Partners and Chesapeake Beach Consulting. View the polling memo showing voter opposition to recent Department of Education and CFPB actions...

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