Press Releases
May 11, 2021
WASHINGTON, D.C. – The U.S. Senate has begun consideration of legislation (S.J. Res. 15) to rescind a federal bank agency rule that facilitates predatory lending. A vote is expected around 5:30 pm et. The rule, issued by the Office of the Comptroller of the Currency (OCC), makes it easier for lenders to charge high interest rates, in violation of state usury laws, through “rent-a-bank” schemes.
“The OCC rule promotes illegal, predatory lending that traps financially vulnerable families in debt,” said Center for Responsible Lending Director of State Policy Lisa Stifler, who recently...
May 10, 2021
WASHINGTON, D.C. - Join us today, Monday, May 10 at 2:30 pm ET to hear about the real world impacts of the "fake lender" ruleand why Congress must immediately pass S.J. Res. 15 / H.J. Res 35 under the Congressional Review Act (CRA) to repeal the rule. The fake lender rule by the Office of the Comptroller of the Currency (OCC) protects predatory lenders that evade state interest rate laws by laundering their loans through a rogue bank. RSVP now.
Hear about:
A restaurant owner fighting $67,000 in loans at 268% APR loan, a rate the predatory lenders are justifying by the OCC rule;
A...
May 5, 2021
WASHINGTON, D.C. - Advocates welcomed reports that Treasury Secretary Janet Yellen plans to appoint a new acting head of the Office of the Comptroller of the Currency (OCC), replacing Blake Paulson, in light of the highly deceptive and false claims that the agency, under Paulson’s leadership, put forward as Congress debates overturning the OCC’s “fake lender” rule. The fake lender rule will enable a massive expansion of predatory lending in all 50 states if the rule is permitted to remain in effect. Congress must pass the Congressional Review Act (CRA) resolution introduced by Senators...
May 3, 2021
WASHINGTON, D.C. – Last Friday, credit unions and advocates registered their strong opposition to a proposal by the National Credit Union Administration (NCUA) that would allow credit union subsidiaries to engage in predatory lending that is explicitly illegal for federal credit unions. The proposal by NCUA, which regulates credit unions across the country, would do significant harm by permitting high-cost lending to credit union members and consumers. The harm may be especially pronounced for communities of color, which are disproportionately impacted by predatory lending.
The Center for...
April 28, 2021
Video highlights, below, on the harms of predatory rent-a-bank schemes
WASHINGTON, D.C. – Today, the U.S. Senate Committee on Banking, Housing, and Urban Development held a hearing, “The Reemergence of Rent-a-Bank?,” focused on legislation to rescind a bank regulator rule that facilitates this predatory lending scheme. The regulation, issued by the Office of the Comptroller of the Currency (OCC), can be eliminated through a legislative tool that prevents the possibility of a Senate filibuster, but that action must be taken before an upcoming deadline in May.
Video highlights of the...
March 25, 2021
330+ groups representing all 50 states and the District of Columbia called for Congress to support a resolution to overturn a rule that helps triple-digit interest rate loans spread across the country by evading state and voter-approved interest rate caps
WASHINGTON, D.C. – The Center for Responsible Lending (CRL) applauds Senators Chris Van Hollen (D-MD), Sherrod Brown (D-OH), and Congressman Chuy García (IL-4) for introducing Congressional Review Act resolutions to eliminate a Trump-era regulation that helps lenders charging 179% APR or more and evade state- and voter-approved interest...
March 23, 2021
DURHAM, N.C. – Today, Governor J.B. Pritzker is signing the Illinois Predatory Loan Prevention Act, which caps annual interest on consumer loans at 36%. The bill was part of a package put forth by the Legislative Black Caucus to address racial inequities in the state. It will save Illinois families more than $500 million per year in predatory fees and provide protections covering more than 12 million people. It passed the legislature with bipartisan support and by wide margins.
Payday and car title loans typically charge over 300% annual interest in Illinois and trap borrowers in a long-...
March 22, 2021
Only a majority vote in Congress would be needed to overturn rule that helps triple-digit interest rate loans evade state and voter-approved interest rate caps and spread across the country
WASHINGTON, D.C. – With just a few days left before a crucial deadline, the Center for Responsible Lending (CRL) today joined a broad coalition of organizations is calling for Congress to eliminate a Trump-era regulation that took effect in December and could “unleash predatory lending in all fifty states.” The rushed “fake lender” rule, which was issued by the Office of the Comptroller of the Currency...
March 17, 2021
California-based Oportun has filed the most debt collection cases in the state and sues to intimidate its mostly Latino customer base
WASHINGTON, D.C. – A new report released today by the Center for Responsible Lending (CRL) offers new evidence that Oportun, the California-based financial services provider that also operates in eight other states, regularly engages in egregious, abusive, and intimidating debt collection practices in California.
The report finds that Oportun has been a top filer of cases in California since 2018; that the company sues to intimidate its mostly Latino...
February 17, 2021
Seventeen states and DC now cap rates at around 36% or lower to stop abusive debt trap loans, with Illinois poised to become the eighteenth
DURHAM, NC – Today, the Center for Responsible Lending (CRL) released a new map showing the typical annual interest rate of a payday loan in states across the country. The map reflects a trend toward stopping loans of 400% APR and more, with a long way yet to go before protections cover all U.S. families. In spite of the progress, states with rate caps face threats from predatory lenders that are partnering with out-of-state banks in order to evade...