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Press Releases

November 17, 2021
WASHINGTON, D.C. – The Center for Responsible Lending (CRL) today announced its support for bipartisan legislation that would limit the interest rate on consumer loans to no more than 36% Annual Percentage Rate (APR). U.S. Congressmen Jesús “Chuy” García (D-Ill.) and Glenn Grothman (R-Wis.) earlier this week introduced the Veterans and Consumers Fair Credit Act. The bill, H.R. 5974, would extend existing interest rate limit protections currently in place for active-duty military servicemembers and certain dependents to veterans and all other Americans. Identical legislation, S. 2508, has...
November 2, 2021
WASHINGTON, D.C. – Center for Responsible Lending (CRL) Director of California Policy Marisabel Torres is currently testifying before the House Financial Services Committee’s Task Force on Financial Technology for a hearing titled “Buy Now, Pay More Later? Investigating Risks and Benefits of BNPL and Other Emerging Fintech Cash Flow Products.” Watch the hearing and to read text of both her oral and written testimonies. In her written testimony, Ms. Torres states: We are particularly concerned that without vigilant monitoring and appropriate regulation, products that promise to promote...
October 19, 2021
WASHINGTON, D.C. – Today, the Center for Responsible Lending, the Consumer Federation of America, the National Consumer Law Center, on behalf of its low-income clients, and the National Fair Housing Alliance released their comment letter to the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Federal Reserve Board (FRB) on the regulators’ “Proposed Interagency Guidance on Third-Party Relationships: Risk Management.” The comments noted that the guidance is silent about rent-a-bank lending, whereby a bank rents out its charter to a financial...
October 12, 2021
Opinion and Order Under Former Director Kraninger Promote Evasions of Credit, Fair Lending, and Payday Loan Laws WASHINGTON, DC – A coalition of 96 consumer, labor, civil rights, legal services, faith, community and financial organizations and academics is urging the Consumer Financial Protection Bureau (CFPB) to revoke or significantly revise two actions taken in late 2020 regarding earned wage access (EWA) products. The groups’ letter argued that the CFPB’s EWA advisory opinion and PayActiv approval order, which declared certain EWA programs not to be “credit,” threaten to create...
October 8, 2021
The Center for Responsible Lending (CRL), California Reinvestment Coalition (CRC), the League of United Latin American Citizens (LULAC), California LULAC, the Consumer Federation of California (CFC), Haven Neighborhood Services, New Economics for Women (NEW), and a coalition of consumer advocates issued the following joint statement in response to Oportun’s withdrawal of its application for a national bank charter: Our coalition is pleased that Oportun, in the face of significant opposition, withdrew their national bank charter application. However, this matter is far from over since it...
July 28, 2021
CRL to testify in support of legislation at Senate hearing scheduled for tomorrow morning WASHINGTON, D.C. – Today, U.S. Senators Jack Reed (D-R.I.) and Sherrod Brown (D-Ohio) – chairs of the Senate Armed Services and Senate Banking committees respectively – along with Senators Jeff Merkley (D-Ore.) and Chris Van Hollen (D-Md.) introduced the Veterans and Consumers Fair Credit Act. The legislation would establish a national 36% annual percentage rate (APR) cap for consumer loans while making clear that it would not interfere with state rate limits lower than that. The bill will be...
July 23, 2021
OAKLAND, CALIF. – California’s Department of Financial Protection and Innovation (DFPI) this week released a report revealing that the state’s payday lenders made fewer than 6.1 million loans with a value of $1.68 billion in 2020, which represents a 40 percent decline overall and a 30 percent decline in customers from 2019. The decrease can be attributed to several factors, including stimulus checks issued by the federal government, local moratoriums on payments and loan forbearances during the COVID-19 pandemic. The decline is consistent with trends in other states and other forms of...
July 1, 2021
WASHINGTON, D.C. – Yesterday, President Biden signed bipartisan Congressional legislation rescinding the misleadingly named “true lender” rule issued by the Office of the Comptroller of the Currency (OCC) late last year. Sen. Chris Van Hollen (D-Md.), Senate Banking Chair Sherrod Brown (D-Ohio), House Financial Services Chair Maxine Waters (D-CA), and Rep. Jesus “Chuy” Garcia (D-IL) led the push to overturn the rule. The rule enabled the “rent-a-bank” scheme, in which high-cost lenders pay a bank willing to pose as the lender on loan documents in order to charge interest rates far in...
June 24, 2021
WASHINGTON, D.C. – Today, the U.S. House of Representatives – following the Senate’s lead – passed, on a bipartisan basis, legislation that will curb the spread of predatory loans carrying annual interest rates near or above 100 percent. The bill, S.J. Res. 15, does this by rescinding a rule, issued late last year by the Office of the Comptroller of the Currency (OCC), which facilitates “rent-a-bank” schemes aimed at evading state usury laws. As the White House has already indicated its support for the bill, it is now expected to be signed into law within the next few days. “Eliminating...
May 11, 2021
WASHINGTON, D.C. - In a 52 - 47 vote tonight, the U.S. Senate voted to overturn the OCC’s “fake lender” rule, which allows predatory lenders to evade state interest rate laws by putting a bank’s name on the paperwork. S.J. Res. 15, a resolution under the Congressional Review Act (CRA), was introduced by Senators Chris Van Hollen (D-MD) and Sherrod Brown (D-OH). Rep. “Chuy” García introduced a parallel resolution, H.J. Res. 35, in the U.S. House of Representatives. Now that the Senate approved the resolution, the House has until the end of this legislative session to vote on it. Advocates...

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