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Press Releases

November 16, 2022
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...
October 20, 2022
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...
September 26, 2022
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...
September 15, 2022
WASHINGTON, D.C. – The market for personal loans is massive and growing, yet the fintechs and other non-bank lenders who make such loans are not subject to regular oversight by the Consumer Financial Protection Bureau (CFPB), which has “created an unlevel playing field and a large risk to consumers,” write the Consumer Bankers Association (CBA) and the Center for Responsible Lending (CRL). The groups jointly filed a petition for the CFPB to develop a rule that would define larger participants in the market for personal loans so that sizable non-depository lenders would be subject to...
September 8, 2022
400% Interest Payday Loans Lead Borrowers into Long-Term Debt Trap DURHAM, NC – The Center for Responsible Lending (CRL) today released the first episode of its “In Focus” video series, designed to break down complex financial issues and make them easier to understand. In the series, CRL financial experts will help people recognize and prevent financial exploitation, to promote financial fairness for all Americans. In the APR Matters video, CRL senior policy counsel Yasmin Farahi explains why predatory payday lenders downplay the APR (annual percentage rate of interest) for high-cost...
July 28, 2022
WASHINGTON, D.C. – Today, the U.S. House Committee on Financial Services voted to advance to the full House legislation authored by Congresswoman Carolyn Maloney (D-N.Y.), the Overdraft Protection Act (H.R. 4277). “Excessive overdraft fees take advantage of families when they experience tough times, making their lives even harder,” said Nadine Chabrier, senior policy counsel at the Center for Responsible Lending (CRL). “The Overdraft Protection Act would provide consumers with much-needed relief by requiring the cost of each overdraft fee to be reasonable, limiting how frequently the fee...
June 30, 2022
On the eve of FDIC’s Community Reinvestment Act examination of TAB Bank, advocates file petition with 44,500+ signatures and analysis of consumer complaints showing deception, debt collection and credit reporting harms from loans up to 189% WASHINGTON – Today a coalition of consumer advocates filed comments with the Federal Deposit Insurance Corporation (FDIC), including a petition signed by more than 44,500 people and a letter describing hundreds of consumer complaints, urging the FDIC to consider Transportation Alliance Bank’s (TAB Bank) predatory rent-a-bank lending in assessing the...
June 23, 2022
Washington, D.C. – The U.S. House Committee on Financial Services today voted to advance a bill to close the industrial loan company (ILC) loophole. The ILC loophole allows Big Tech and other nonbank companies to offer financial products and services without complying with the safeguards and oversights required of bank holding companies. The “Close the ILC Loophole Act” (H.R. 5912) now heads to the floor for consideration by the entire legislative body. Americans for Financial Reform, Bank Policy Institute, Center for Responsible Lending, Consumer Federation of America, Credit Union...
June 1, 2022
BATON ROUGE, LA – Last night, Governor John Bel Edwards of Louisiana vetoed SB 381, a bill that would have expanded predatory lending in the state by legalizing larger loans with longer terms at triple-digit annual interest rates. Statement from Davante Lewis, Director of Public Affairs and Outreach for the Louisiana Budget Project: Louisiana Budget Project applauds Governor Edwards for recognizing the harm that triple-digit interest debt traps cause working families. We applaud his veto of SB 381, a narrowly passed bill that was supported only by companies interested in making high-...
May 25, 2022
Military servicemembers, veterans, and their families report outrageously high interest rates and deceptive lending practices WASHINGTON – The predatory lending practices of EasyPay Finance and Utah-based, FDIC-supervised Transportation Alliance Bank (TAB Bank) are hurting military servicemembers, veterans, and their families, according to a new report from a coalition of consumer advocacy groups released in advance of Memorial Day. EasyPay Finance, which charges up to 189% APR, is popping up as a financing option at furniture stores, auto repair shops, pet stores and other retail...

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