Press Releases

Washington, D.C.– The Department of Education (ED) and Department of Justice (DOJ) announced yesterday policy changes to the bankruptcy discharge process for student loan borrowers. The new changes simplify and standardize the process for economically distressed borrowers to discharge their debts. Whitney Barkley-Denney, deputy director of state policy and senior policy counsel at the Center for Responsible Lending (CRL), made the following statement: For decades, it has been nearly impossible for students to get their debts discharged through bankruptcy. The announcement is long overdue and

New Product is Credit and Should be Regulated as Such WASHINGTON, DC – As the shopping season arrives, the Center for Responsible Lending (CRL) today released a short video explaining concerns about the exploding Buy Now Pay Later market and calling for the credit product to carry the same protections as credit cards. Buy Now Pay Later offers appear online as consumers are shopping for a wide range of products. In the typical arrangement, shoppers can opt to make four payments over six weeks. While this could be convenient, the product may have hidden costs and risks, including late fees

WASHINGTON, D.C. – Following the White House’s announcement that it would nominate Martin Gruenberg to serve as Chair of the Federal Deposit Insurance Corporation (FDIC), Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: We applaud President Biden’s nomination of Marty Gruenberg for FDIC Chair. Marty is an experienced leader with a strong track record of protecting depositors, taxpayers, and consumers. The U.S. Senate should confirm his nomination without delay. We look forward to continued work with Marty toward a fair, inclusive financial

WASHINGTON, D.C. – The high burden of student loan debt limits the future financial options of graduates of Historically Black Colleges and Universities (HBCU) and breaks the promise of a college education as a great equalizer, according to a new research report published today by the Center for Responsible Lending (CRL). The report, “Paying from the Grave,” highlights the impacts of systemic racism on wealth accumulation for families and unequal resource distribution among institutions. The research finds that student debt prevents many HBCU graduates from engaging in wealth-building

Washington, D.C. – The Center for Responsible Lending (CRL) and National Consumer Law Center (NCLC) today expressed support for the Protecting Wages of Essential Workers Act of 2022 (Protecting Wages Act). The bill will ensure that working Americans who hold consumer debt are not hit with excessive wage seizures that leave them unable to afford necessities. The legislation also prohibits debt collectors from using threats of jail to coerce payment of a debt. The Protecting Wages Act (H.R.9224), introduced this week by Rep. Alma Adams (D-NC), is designed to better protect families coping with

WASHINGTON, D.C. – A federal appeals court last week temporarily stopped the Biden administration’s student debt cancellation plan, which is set to provide up to $20,000 in relief to eligible graduates from the nation’s more than 44 million student loan borrowers. In response, Jaylon Herbin, outreach and policy manager for the Center for Responsible Lending (CRL), made the following statement: Opponents of student debt relief are trying to prevent millions of Americans, including Black women and low-wealth borrowers disproportionately burdened by student debt, from enjoying wealth-building

WASHINGTON, D.C. – After a panel of judges on the U.S. Court of Appeals for the Fifth Circuit ruled that the Consumer Financial Protection Bureau’s (CFPB) funding structure was unconstitutional, Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: The court’s misguided opinion would stop the Consumer Financial Protection Bureau from providing critical protections for American families. This ruling would undermine the consumer bureau’s effectiveness as an independent watchdog. It would let payday lenders continue to offer financial products and

WASHINGTON, D.C. – Today at 10:45 am ET at the House Triangle, and live-streamed on the Center for Responsible Lending’s Facebook page, Congresswoman Chrissy Houlahan (D-PA) and affected small business owners will call attention to the financial devastation more than 300,000 American small businesses are now facing due to unforgiven PPP loans totaling more than $3.7 billion, and to demand that the U.S. Small Business Administration (SBA) act immediately to rescind the “Good Faith Error” rule, which currently prevents lenders from forgiving the loans. Center for Responsible Lending Researcher

WASHINGTON – Today, small business owners (full statements below) from Illinois, Texas, Maryland, California, Washington, and North Carolina joined with U.S. Representative Chrissy Houlahan (D-PA), American Business Immigration Coalition (ABIC), and the Center for Responsible Lending (CRL) and Small Business Majority (SBM) to Demand the Small Business Administration (SBA) reform the “good faith error” rule, one of more than 60 rules passed by SBA during the pandemic, which prevents lenders from forgiving the loans that are now devastating more than 300,000 American small businesses with more

CRL: 85 percent of survey respondents suffer negative consequences from larger, longer-term loans with triple-digit interest WASHINGTON, DC – High-cost installment loans, taking a rising share of the lending market over the past decade, often compound borrowers’ financial problems, according to new research released today by the Center for Responsible Lending. The report, “ Unsafe Harbor: The Persistent Harms of High-Cost Installment Loans,” provides a rare look at the significant challenges high-cost personal installment loans create for many borrowers. These challenges include the inability