Press Releases

Hiding Ability to Compare True Costs of Loan Options Lets Lenders Take Advantage of Consumers WASHINGTON – The Center for Responsible Lending (CRL) today released a video for Financial Literacy Month to educate the public on why readily providing the APR (annual percentage rate) of payday loans is essential to providing financial fairness for consumers, and to urge Congress and states that still have payday lending to pass a 36 percent rate cap for annual interest on these loans. Payday loans – also known as cash advance loans – cost American families more than $4 billion annually. Payday

WASHINGTON, D.C. – Starting today at 10 AM ET, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testifies before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on the CFPB’s Semiannual Report to Congress. He will also testify on the report before the House Committee on Financial Services tomorrow at 10 AM ET. “Director Chopra’s actions to protect consumers from predatory financial practices deserve praise, not criticism, from Congress,” said Mike Calhoun, president of the Center for Responsible Lending. “American families need protections from abusive

WASHINGTON, D.C. – The U.S. Department of Education announced today changes to its income-driven repayment (IDR) programs that will allow thousands of borrowers to receive immediate relief. About 40,000 borrowers are also scheduled to have their loans cancelled through the Department’s Public Service Loan Forgiveness (PSLF) program. In response, Jaylon Herbin, outreach and policy manager at the Center for Responsible Lending (CRL), made the following statement: We are pleased that thousands of borrowers will benefit from this long-awaited policy change that will finally provide low-income and

WASHINGTON, D.C. –The Biden Administration announced today that it will nominate Michael Barr as Vice Chair for Supervision at the Federal Reserve. In response, Mike Calhoun, president of the Center for Responsible Lending (CRL), made the following statement: More than ever, our country needs knowledgeable financial regulators at the helm of our country. Michael Barr is a well-qualified choice for Vice Chair for Supervision at the Federal Reserve. Mr. Barr has a record of standing up for regulations – like the Community Reinvestment Act and overdraft protections – that promote financial

WASHINGTON, D.C. – The Biden Administration announced today that it will extend the federal student loan payment pause until August 31st, 2022. In response, Jaylon Herbin, outreach and policy manager at the Center for Responsible Lending (CRL), made the following statement: The latest extension of the federal student loan payment pause signals the need for a more permanent solution – specifically, widespread student loan cancellation – for the nation’s $1.7 trillion student debt crisis. While we applaud the Administration for allowing borrowers who were in delinquency or default to receive a

Washington, D.C. — A broad coalition of bank and credit union associations and consumer organizations submitted a letter today to the U.S. House Committee on Financial Services urging passage of the Close the ILC Loophole Act, introduced by Representatives Chuy Garcia (D-IL) and Lance Gooden (R-TX). The ILC loophole allows large technology companies — such as Japanese e-commerce firm Rakuten, whose primary business is monetizing consumer data — and other commercial firms to own and operate what is essentially a full-service FDIC-insured bank, and do so entirely free from the regulatory

WASHINGTON, D.C. — Borrowers using both federal student loans and Income-Share Agreements (ISAs) could pay as much as 25 percent of their discretionary income in repayment for a decade, according to a report published today by the Center for Responsible Lending (CRL). The report also found that ISA underwriting criteria could lead to negative impacts for women and people of color. Marketed as innovative alternatives to student loans, ISAs are private loan products that allow lenders to require students to make payments in exchange for a percentage of their future earnings for a fixed number of

Calls for federal regulators to protect all Americans from harmful overdraft fees WASHINGTON, D.C. – Citigroup (Citi), one of the five largest banks in America, announced yesterday it will end all overdraft fees and non-sufficient fund fees (aka bounced check fees). It is the biggest bank thus far to do this. Center for Responsible Lending (CRL) Policy and Litigation Counsel Nadine Chabrier issued the following statement: Overdraft fees kick people when they are down. Their costs are borne by financially vulnerable consumers. These fees disproportionately harm Black and Latino Americans with a

Today, 145 organizations sent a letter to the “Big Three” credit bureaus (Equifax, Experian, and Transunion) and to the Consumer Data Industry Association (CDIA), the trade association that represents them, urging them to take needed actions to correct credit report problems for transgender and nonbinary consumers. The signatory organizations include LGBTQI+ advocacy organizations, community centers, chambers of commerce, businesses, and community groups, as well as consumer, employment, housing, and anti-poverty organizations. The letter responds to the CDIA’s February 2 announcement, “

Washington, D.C. – The Center for Responsible Lending (CRL) and a coalition of 51 small business advocates submitted a letter to Congress today calling for fair treatment for microbusinesses seeking forgiveness of Paycheck Protection Program (PPP) loans. The letter states that more than 400,000 microbusinesses that received PPP loans of $25,000 or less in 2020 are being required to repay all or a portion of this emergency relief. The letter applauds Congress and the Small Business Administration’s (SBA) swift action in implementing PPP loans to address urgent needs as the pandemic and ensuing