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Press Releases

October 5, 2018
Payday Loan Sharks are Allied with New Leadership at the CFPB in Trying to Stop Consumer Safeguards WASHINGTON, D.C. – Today marks the one-year anniversary of the Consumer Financial Protection Bureau (CFPB) finalizing its rule to stop payday and car-title debt traps. It is the first-ever federal rule of its kind and came after more than five and a half years of development, as shown in this interactive timeline. At the heart of the rule is the common sense and widely-supported principle that lenders check a borrower’s ability to repay before issuing a loan. The Center for Responsible...
September 11, 2018
WASHINGTON, D.C. - U.S. Bank recently rolled out its online Simple Loan product where borrowers can take out loans of $100 to $1,000. The borrower would be required to pay the loan back over three monthly installment payments with an annual percentage rate (APR) of 70% to 88%, well over the 36% APR cap that consumer advocates and civil rights organizations recommend. The 36% finds precedent in the Military Lending Act for loans to military servicemembers and in many state laws. This product marks the first major rollout of a new national bank installment loan product since the OCC’s...
September 5, 2018
OAKLAND, CALIF. – The Center for Responsible Lending (CRL) is calling on California Governor Jerry Brown to veto AB 237, a bill which would expand unsound lending practices in ways that do not address the real needs of low income and underserved communities. In fact, the changes proposed in this bill put consumers at risk of unaffordable and even predatory loans of more than 100% annual percentage rate (APR). The bill would raise the loan limits so that lenders under an existing pilot program can make larger loans, up to $7,500 without addressing ongoing concerns about high costs and has...
August 23, 2018
As Chair of FDIC considers policy, broad coalition urges regulators and banks to avoid toxic loans that trap consumers in debt WASHINGTON, D.C. – The head of the Federal Deposit Insurance Corporation (FDIC), Jelena McWilliams, is “reviewing whether to rescind guidelines for ‘deposit advance’ loans,” according to an interview she had with the Wall Street Journal. “Deposit advance” is a euphemism for bank payday loans, which – before the FDIC’s 2013 guidance – had triple-digit interest rates, lacked an ability-to-repay standard, and trapped consumers in debt. For this reason, consumer, civil...
August 21, 2018
New research from Center for Responsible Lending reveals disproportionate concentration of payday lenders in Michigan rural and low-income neighborhoods and communities of color DURHAM, N.C. -- Payday lenders have targeted vulnerable Michigan communities, disproportionately locating their stores in communities of color, rural areas, and low-income neighborhoods, according to a new report from the Center for Responsible Lending (CRL). Through a business model designed to trap people facing economic hardship in long-term cycles of debt, payday lenders raked in $94 million in 2016 and more...
August 15, 2018
49 Senators Urge CFPB Head Mick Mulvaney to Reverse His Plan to Weaken Protections for Servicemembers WASHINGTON, D.C. – Today, nearly half the Senate, including Senate Armed Services Committee Ranking Member Jack Reed (R.I.), Banking Committee Ranking Member Sherrod Brown (Ohio), and Minority Leader Chuck Schumer (N.Y.), wrote the Consumer Financial Protection Bureau (CFPB), urging it to reverse course on its decision to halt examinations of payday and other lenders for violations of the Military Lending Act (MLA). This letter comes as news reports show the Mick Mulvaney-led CFPB decided...
August 13, 2018
OAKLAND, CALIF. – Today, the California Supreme Court ruled in favor of the plaintiffs in De La Torre v. CashCall, that high-interest rates on loans above $2,500 may be deemed unconscionable, and therefore illegal—even if those loans aren’t subject to statutory rate limits. The case involved plaintiff Eduardo De La Torre, a former student at the University of California Davis, who borrowed $2,600 from CashCall at an interest rate of 98% Annual Percentage Rate (APR). The Center for Responsible Lending (CRL) co-authored an amicus brief urging the Court to rule that the high-rate of a loan...
August 10, 2018
BREAKING: Illegally Overcharging Military Servicemembers to be Easier As CFPB to Stop Supervision of Lenders Center for Responsible Lending raises alarm that military families may be re-exposed to predatory lenders because of another move by Mick Mulvaney WASHINGTON, D.C. – This evening, the New York Times reports that the Consumer Financial Protection Bureau (CFPB) will no longer supervise financial institutions to ensure they are complying with the Military Lending Act (MLA), a law that protects active duty servicemembers from predatory financial practices. The MLA prevents...
July 31, 2018
WASHINGTON, D.C. - Voters of all political parties overwhelmingly oppose the actions taken by Mick Mulvaney to undermine the mission of the Consumer Financial Protection Bureau (CFPB) and feel a strong connection between lax enforcement of the rules on Wall Street and their daily welfare, according to a new poll release by Americans for Financial Reform (AFR) and the Center for Responsible Lending (CRL). Ten years after the 2008 financial crisis brought on a searing recession, the survey revealed enduring, strong, and bipartisan support for tougher regulation of Wall Street and predatory...
July 31, 2018
Report Calls for Repeal of CFPB’s Payday Rule and Override of State Laws WASHINGTON, D.C. – Today, the U.S. Department of Treasury issued a new report calling for broad deregulation of nonbank lenders, including financial technology (fintech) firms. Specifically, the report endorses the repeal of the Consumer Financial Protection Bureau’s (CFPB) Payday Rule, the creation of special federal bank charters for fintech firms, regulatory “sandboxes” that exempt startups from certain consumer protection laws, and federal preemption of state consumer protection laws. These recommendations fly in...

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