Press Releases
November 18, 2016
Today, the Consumer Financial Protection Bureau (CFPB) filed a petition for rehearing before the U.S. Court of Appeals for the District of Columbia Circuit urging the court to revisit a three judge panel's 2-1 decision made last month on CFPB's enforcement order in PHH Corporation vs. CFPB. In its decision, the panel ruled that the President must be able to remove the CFPB Director without cause.
Civil rights groups underscored the need for the CFPB to preserve its independence as a strong regulatory agency, as Congress intended, and support the Bureau's efforts to have the decision...
October 11, 2016
If the PHH vs. CFPB Decision Stands It Would Undermine Consumer Protection Agency, Stifle Effort To Curb Predatory Lending
Today, in a 2-1 ruling led by Judge Brett Kavanaugh, the U.S. Court of Appeals for the District of Columbia Circuit ruled against the Consumer Financial Protection Bureau’s (CFPB) enforcement order in PHH Corporation vs. CFPB.
In its decision, the court held that the CFPB’s current single-director structure is unconstitutional. More specifically, the court found that the President must be able to remove the CFPB Director without cause. This flies in the face of long...
July 14, 2016
Financial accountability and tough regulations are still needed, say 3 out of 4 likely voters. These two top line findings from a recent poll measured consumer satisfaction with Wall Street banks as well as a range of other financial services and providers including credit cards, debt collectors, payday loans and mortgages. The poll, jointly commissioned by the Center for Responsible Lending (CRL) and Americans for Financial Reform (AFR), reveals that these preferences are shared across partisan affiliations.
When asked whether more financial regulation was needed, 69 percent of all...
July 6, 2016
A new national poll found that, by a margin of 3 to 1, voters strongly support restoring consumers' right to join together to take legal action against banks and other financial services companies that break the law. With the House of Representatives set to vote today on a multi-agency appropriations bill with riders that would strip the CFPB's authority to act on forced arbitration, voters of all political parties express majority support for federal action to restrict the practice.
Consumer finance contracts now commonly require disputes to be settled through private arbitration instead...
May 5, 2016
Today the Consumer Financial Protection Bureau (CFPB) announced a proposed rule that will limit the financial industry’s use of forced arbitration, a practice used to block consumers from enforcing their legal rights.
In response, Mike Calhoun, President of the Center for Responsible Lending (CRL), issued the following statement:
This proposed rule is another key development in bringing transparency and fairness to consumer finance. While it does not end all forced arbitration, it does return the opportunity for class actions to be heard and argued in a court of law.
By...
May 2, 2016
A new survey finds that Colorado voters strongly oppose the idea of raising interest rates on consumer loans. Opposition was widespread among voters across lines of race, party affiliation, and household income, but the intensity of opposition was especially strong among voters of color and those who had served in the military. Overall, 51% of voters said they would be "much more likely" to vote against a legislator who voted to increase interest rates. That number rose to 58% of military service-members or veterans, and 62% of non-whites.
At issue are consumer loans that typically range...
March 16, 2016
The House Financial Services Committee continues its assault on regulators that fulfill their responsibilities to address predatory, high-risk financial practices. Today the Committee attacked the FDIC for curbing banks' involvement in tax refund anticipation loans. These products carry interest rates as high as 500% APR, posing clear consumer protection concerns as well as safety and soundness risks to the handful of banks involved in them.
Mike Calhoun, CRL's President, issued the following statement:
Tax refund anticipation loans preyed on low-income consumers by charging...
October 6, 2015
Today, the Consumer Financial Protection Bureau released a proposal to rein in the widespread use of clauses in financial services contracts that ban class action lawsuits by groups of consumers who have been harmed. They stopped short of also banning binding mandatory arbitration provisions.
CRL Policy Counsel Lisa Stifler offered the following remarks:
When consumers are deceived or cheated when using a credit card, opening a bank account or getting any manner of credit, they should have an opportunity to make their case before an impartial judge. And if the cheating is widespread...
September 18, 2015
Today, the federal Consumer Financial Protection Bureau (CFPB) announced new members of its Consumer Advisory Board, including Center for Responsible Lending (CRL) Senior Vice President Chris Kukla. The board brings together external experts, industry representatives, consumers, community leaders and advocates to discuss consumer protection issues, financial products and services, civil rights and underserved communities.
Kukla, who leads CRL's auto lending initiatives, issued the following statement:
It is an honor to be named to the board, and I look forward to working with its...
September 16, 2015
In recognition of Hispanic Heritage Month, September 15-October 15, the Center for Responsible Lending will highlight issues this month that disproportionately affect this community. If your outlet is planning or considering coverage of financial services that pose challenges for consumers in general or Latinos in particular, CRL experts in policy, research and advocacy are available for scheduled interviews.
View a factsheet on these abusive practices.
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Andrew High at Andrew.High@...