Press Releases
February 21, 2018
Payday lenders strip $50 million per year from Colorado economy
DENVER, CO – The Center for Responsible Lending (CRL) released a report today showing that payday lenders charge Coloradans an average of $119 in fees and interest to borrow $392, with an average annual percentage rate (APR) of 129%. This practice strips $50 million per year from low-income Coloradans. The report analyzed data published by the Colorado Attorney General’s office.
Also today, a proposed initiative for the November ballot that would cap payday lending rates at 36% comes before the Colorado Initiatives and...
February 15, 2018
Assemblymember Kalra's AB 2500 provides pragmatic solution to curb abusive high-cost loans
SACRAMENTO, CALIF. - Today, the Center for Responsible Lending (CRL) and city leaders from across the state applauded California Assemblymember Ash Kalra’s (D-San Jose) introduction of AB 2500, the Safe Consumer Lending Act, a bill to protect California families from abusive high-cost installment loans. The legislation would extend California’s current interest rate cap for consumer loans between $2,500 to $10,000. Kalra announced the introduction of this bill at a press conference in Sacramento...
February 15, 2018
WASHINGTON, D.C. – Last night, the U.S. House of Representatives voted to pass H.R. 3299, the so called “Madden fix” bill which would preempt state interest rate caps and open the flood gates to online predatory lending of 300% APR and higher loans. The bill passed despite opposition from consumer advocates. Several Members of Congress took to the floor to voice their firm opposition of this legislation and urged its sponsors to address predatory loopholes that exist in the bill. H.R. 3299 is sponsored by U.S. Reps. Patrick McHenry (R-N.C.) and Greg Meeks (D-N.Y.). The bill will now go to the...
February 14, 2018
WASHINGTON, D.C. – Today, the U.S. House of Representatives voted to pass H.R. 3299, the so called “Madden fix” bill which would preempt state interest rate caps and open the flood gates to online predatory lending of 300% APR and higher loans. The bill passed despite not having support from consumer advocates. Several Members of Congress took to the floor to voice their firm opposition of this legislation and urged its sponsors to address predatory loopholes that exist in the bill. H.R. 3299 is sponsored by U.S. Reps. Patrick McHenry (R-N.C.) and Greg Meeks (D-N.Y.). The bill will now go to...
February 13, 2018
WASHINGTON, D.C. – Today, U.S. Senator Jeff Merkley (D-Oregon) and U.S. Reps. Suzanne Bonamici (D-Mich.) and Elijah E. Cummings (D-Md.) introduced the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act, a bill to crack down on some of the worst abusive practices of the payday lending industry, which strips wealth from working families across the country. The bill, which underscores the importance of state usury limits in controlling predatory lending, is cosponsored by various members of the House and Senate.
"Payday lenders will go to great lengths to trap struggling families in an...
January 16, 2018
WASHINGTON, DC – Today, OMB Director Mick Mulvaney, who was unlawfully appointed to also be Acting Director of the Consumer Financial Protection Bureau (CFPB), announced that the CFPB would reopen its rule on payday and car-title loans. This is Mulvaney’s first formal step toward trying to eliminate planned CFPB protections against the payday loan debt trap.
Rebecca Borné, Senior Policy Counsel at the Center for Responsible Lending (CRL) issued the following statement:
The human devastation caused by payday loans, which average nearly 400 percent APR, has been extensively documented....
December 12, 2017
LOS ANGELES, CALIF. – Today, the Los Angeles County Board of Supervisors passed a motion calling for a comprehensive approach to protect consumers from the severe harms of predatory high-cost installment loans. The motion, which was introduced by LA County Supervisors Hilda Solis and Sheila Kuehl, instructs several of the Los Angeles County agencies, including the Department of Business and Consumer Affairs, Department of Regional Planning, and County Treasurer and Tax Collector to identify outreach and regulatory approaches to protect residents from harmful financial products.
The...
December 11, 2017
DURHAM, NC — Ignoring the voices of families and communities who have worked for many years for relief from the harms of predatory payday lending, a handful of members of Congress have introduced legislation that would nullify the Consumer Financial Protection Bureau’s (Consumer Bureau) national rule to rein in payday lending abuses. Their legislation uses Congressional Review Act authority to repeal the rule and prevent the Consumer Bureau from issuing a similar rule in the future, giving payday and car title lenders a free pass.
This legislation, introduced by Rep. Dennis Ross (R-Fla.)...
December 8, 2017
Agency’s Independence Is Necessary to Its Mission, Groups Say
WASHINGTON, D.C. – The U.S. Consumer Financial Protection Bureau’s (CFPB) independence from external political influence is crucial to the agency’s mission of protecting consumers, 10 groups told a court today in an amicus brief (PDF) filed in the U.S. District Court for the District of Columbia.
The groups are Public Citizen, Americans for Financial Reform, Center for Responsible Lending, Consumer Action, National Association of Consumer Advocates (NACA), National Consumer Law Center (NCLC), National Consumers League,...
December 5, 2017
Mulvaney’s Call for Congress to Rescind Basic Borrower Protection Shows He Sides with Loan Sharks Over Consumers
WASHINGTON, DC – OMB Director Mick Mulvaney, who is unlawfully behaving as Acting Director of the Consumer Financial Protection Bureau (CFPB), last night voiced support for a Congressional Review Act to repeal the Consumer Bureau rule on payday and car-title loan debt traps.
Center for Responsible Lending Director of Federal Advocacy Scott Astrada issued the following statement:
The Consumer Financial Protection Bureau was established to prevent Americans from losing...