Press Releases
June 28, 2006
Most people assume they can take their grievances to court if a lender violates the law. Unfortunately, many borrowers are denied that option through "binding mandatory arbitration" (BMA), a common clause in loan contracts. Barred from bringing claims to court, victims of abusive lending practices frequently find that their loan contracts require them to go through arbitration: proceedings conducted in secrecy, with limited evidence and documentation. All too often, borrowers pay excessive costs and receive unfair results.
CRL has joined a coalition of leading consumer groups in a...
May 31, 2006
African-Americans and Latinos, government figures show, get high-interest sub-prime mortgages far more often than whites. Now researchers at the Center for Responsible Lending find those disparities persist even when the borrowers have the same qualifications as whites.
Lenders say they charge more because African-Americans and Latinos tend to have shakier credit histories, which makes lending to them riskier.
But that explanation is simply wrong, the Center found in its groundbreaking new research.
The most extensive study of its kind shows that even after controlling for...
May 31, 2006
African-Americans and Latinos, government figures show, get high-interest sub-prime mortgages far more often than whites. Now researchers at the Center for Responsible Lending find those disparities persist even when the borrowers have the same qualifications as whites.
Lenders say they charge more because African-Americans and Latinos tend to have shakier credit histories, which makes lending to them riskier.
But that explanation is simply wrong, the Center found in its groundbreaking new research.
The most extensive study of its kind shows that even after controlling for...
May 5, 2006
Louisianans will need to keep an eye on their wallets and their cars if their state legislators pass a bill to let lenders charge 300 percent annual percentage rate when people put up their cars as collateral for a loan.
What's more, the bills would make it all too easy for these lenders, who thrive on trapping people in debt, to grab borrowers' cars if they can't pay up.
Car title lenders induce people to take out loans they cannot afford, so they are forced to roll over these loans again and again, racking up ever more interest and - in some cases - losing their cars.
Groups...
April 24, 2006
A nationwide survey shows that low-income people, single people, and many people of color are increasingly turning to borrowing money from financial institutions by over-drawing their checking accounts, racking up interest rates that can exceed 1,000 percent.
A telephone survey of 3,310 households done for the Center for Responsible Lending shows that a mere 16 percent of bank customers account for nearly three-quarters of all overdraft loans.
In other words, these people are effectively turning to overdraft loans (or "courtesy overdraft protection," as it's often called) as a line-of-...
March 14, 2006
Local and national groups opposing housing discrimination urged the county council of Montgomery County, Md. to support a fair lending ordinance and not reverse its commitment to fair housing for everyone.
Mortgage lenders sued the county for passing an ordinance prohibiting lenders from discriminating. Their lawyers persuaded a judge to delay the new law, supposed to take effect last week, pending a hearing.
Discrimination is already illegal under federal and state laws, and already covers the lenders who are complaining about the Montgomery County ordinance. So it is difficult to see...
March 2, 2006
Yesterday, Attorney General Roy Cooper announced that the last three major out-of-state payday lenders had agreed to stop making illegal loans in North Carolina.
As a result, working families in the state will save almost $100 million each year -- money they can use to buy food, pay their bills, and balance their family budget. Payday lenders make small loans and charge interest rates of as much as 400 percent, trapping families in a cycle of debt from which many never recover.
The Center for Responsible Lending, a nonprofit, non-partisan research group based in Durham, NC, applauds the...
February 23, 2006
Download the Report
The Best Value in the Subprime Market: State Predatory Lending Reforms (PDF 432kb)
A study by the Center for Responsible Lending proves that laws against predatory lending thwart abusive lenders while in many cases increasing availability of credit for people who need it most.
"The Best Value in the Subprime Market: State Predatory Lending Reforms" is the most comprehensive study of its kind. Researchers examined more than 6 million subprime mortgages from 1998 through 2004, or three-quarters of all the loans in the subprime market during those years.
States with...
February 23, 2006
Download the Report
The Best Value in the Subprime Market: State Predatory Lending Reforms (PDF 432kb)
A study by the Center for Responsible Lending proves that laws against predatory lending thwart abusive lenders while in many cases increasing availability of credit for people who need it most.
"The Best Value in the Subprime Market: State Predatory Lending Reforms" is the most comprehensive study of its kind. Researchers examined more than 6 million subprime mortgages from 1998 through 2004, or three-quarters of all the loans in the subprime market during those years.
States with...
February 13, 2006
Augusta, ME - Predatory lending practices cost Mainers at least $23 million a year, say Coastal Enterprises Inc. and the Center for Responsible Lending in the first comprehensive study of predatory lending in Maine.
These predatory practices endanger the homes and financial security of some of Maine's most vulnerable citizens. Based on the findings of the report, approximately 1,000 families are affected each year by these practices.
"Our findings are not about Maine banks and credit unions which serve our communities," said Ron Phillips, president of Coastal Enterprises. "Rather, it's...