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Press Releases

June 12, 2018
WASHINGTON, D.C. – The Center for Responsible Lending (CRL) applauds a federal court ruling out of Texas, which rejected a Joint Motion by the Consumer Financial Protection Bureau (CFPB) and the payday lenders that was intended to delay the compliance date for the CFPB’s Payday Rule. The CFPB is currently led by Mick Mulvaney, who was unlawfully installed as “Acting Director” by President Trump. Center for Responsible Lending (CRL) Litigation Counsel Will Corbett issued the following statement: Mick Mulvaney and the payday lenders tried an end-run around the law and it was rightly...
June 1, 2018
AB 2500 would have been a historic step forward to help distressed Californians from falling victims to abusive predatory lending SACRAMENTO, CALIF. – Last night, several members of the California Assembly succumbed to industry pressure and voted down AB 2500, the Safe Consumer Lending Act, a bill introduced by Assemblymember Ash Kalra (D-San Jose) to protect California families from abusive high-cost installment loans, including those made by car title lenders. Had it passed, the legislation would have substantially reduced the costs of consumer loans that are between $2,500 to $5,000. AB...
May 31, 2018
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB), which is led by the unlawfully appointed “Acting Director” Mick Mulvaney, joined the leading payday lenders’ association in filing a joint motion to delay the compliance date for the CFPB’s rule on payday loans (PDF) until 445 days from the final judgement of litigation challenging the rule. Center for Responsible Lending (CRL) Director of Federal Policy Scott Astrada issued the following statement: It is appalling that an agency with a primary mission of protecting consumers is now teaming up with a...
May 23, 2018
Banks and Agency Have Responsibility to Uphold These Principles WASHINGTON, D.C. – Today, the Office of the Comptroller of the Currency (OCC) rolled out guidance addressing installment lending with repayment periods ranging from two to twelve months. The guidance encourages banks to make these loans while cautioning banks to adhere to principles of reasonable pricing and affordability. It also reiterates the agency’s longstanding opposition to “rent-a-charter” arrangements used by high-cost lenders to evade state usury law. The OCC’s enforcement of these principles and responsible...
May 22, 2018
LOS ANGELES, CALIF. – On Thursday, May 24, 2018, the Stop the Debt Trap Los Angeles, a coalition of consumer and civil rights advocates and faith leaders, will host a press conference in Los Angeles to rally behind the County’s anticipated release of a report that aims to curtail predatory lending. The advocates will also urge Los Angeles Assemblymembers to support AB 2500, the Safe Consumer Lending Act, a bill to put in place a 36% interest rate cap for consumer loans of $2,500 to $5,000, which would help families in Los Angeles from falling into an abusive debt trap. The County Board of...
May 17, 2018
WASHINGTON, D.C. - Congressional Review Act (CRA) resolutions—S.J. Res 56 and H.J. Res 122—to repeal the Consumer Financial Protection Bureau’s (CFPB or consumer bureau) payday and car title lending rule will not advance in Congress, as their legislative clock has expired. The CFPB rule, finalized in October, establishes basic consumer protections on these 300% or more interest loans, including the common sense standard that lenders should have to verify a borrower’s ability to repay before making the loan. Consumer and civil rights advocates are urging the consumer bureau to keep intact the...
May 10, 2018
SB 818 would renew mortgage and foreclosure safeguards, such as the right to appeal when a loan modification application is denied. SACRAMENTO, CALIF. – Today, the California Senate passed SB 818, a bill to restore key provisions in California’s landmark “Homeowner’s Bill of Rights” (HBOR) legislation which passed in 2012 in response to the foreclosure crisis. HBOR has prevented thousands of avoidable foreclosures by requiring mortgage loan servicers to engage in timely, fair and transparent process with struggling homeowners before proceeding to foreclosure. The bill’s sponsor is Senator...
May 10, 2018
Savings Figures Could Flip to Fee Drain if Federal Threats to NC Consumer Protections Are Realized DURHAM, N.C. – A new Center for Responsible Lending (CRL) analysis breaks down the $457 million that North Carolinians save each year through an interest rate cap on predatory payday and car title loans, calculating the fees that residents of each county and Congressional district would lose without that protection. North Carolina enjoys strong protections against triple-digit interest loans that are designed to trap cash-strapped families in long-term debt. Payday loans were legal for...
April 9, 2018
Payday lenders’ legal challenge to important CFPB protections would keep working families stuck in crippling debt traps WASHINGTON, D.C. – By filing a legal challenge to an important Consumer Financial Protection Bureau (CFPB or Consumer Bureau) rule, payday lenders are seeking to avoid consumer protections against harmful business models that keep distressed borrowers in a cycle of debt, members of the Stop the Debt Trap coalition said today. Led by the Community Financial Services Association of America (CFSA) and the Consumer Service Alliance of Texas, the payday lending industry...
April 4, 2018
SB 818 would renew mortgage and foreclosure protections, such as the right to appeal when a loan modification application is denied. SACRAMENTO, CALIF. – The California Senate Banking and Financial Institutions Committee has voted to pass SB 818, a bill to restore key provisions in California’s landmark “Homeowner’s Bill of Rights” (HBOR) legislation which passed in 2012 in response to the foreclosure crisis. HBOR has prevented thousands of avoidable foreclosures by requiring mortgage loan servicers to engage in timely, fair and transparent process with struggling homeowners before...

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