Press Releases

Federal regulators issued credit card rules today that take a significant and welcome step to curb some of the industry's most unfair and abusive practices. Unfortunately, implementation of the rules won't take effect for 18 months and, in several key respects, don't go far enough to protect consumers. "Protecting consumers from the costly credit card practices that drain their wallets should always be a priority," said Center for Responsible Lending president Michael Calhoun. "But with a faltering economy showing no sign of improvement, consumers need to be able to hold on to hard-earned

Credit card companies make credit more costly than necessary by manipulating payments to keep the highest-cost balances from being paid off and by imposing hidden, hard-to-understand penalty interest rates, two new studies released today by Center for Responsible Lending show. The reports, entitled "Priceless or Just Expensive? The Use of Penalty Rates in the Credit Card Industry" and "What's Draining Your Wallet? The Real Cost of Credit Card Cash Advances", detail widespread practices that deceive and abuse consumers. These include the use of penalty repricing--raising a cardholder's APR for

Today we learn from the Mortgage Bankers Association (MBA) that at least one out of every 10 homeowners is behind on their mortgage or already facing foreclosure, a fact that underscores what we already know is the gloomiest housing picture in the United States in decades, possibly ever. The MBA's newest numbers for the three months ending September 30 also underscore what we and others, including many economists with expertise in housing issues, have been saying for over a year: Avoiding foreclosures that don't need to happen is our country's best hope for economic recovery. The reason

OAKLAND—Dec. 5, 2008—Nearly 11 percent of all mortgage loans in California were past due or in foreclosure at the end of September according to new data released this morning from the Mortgage Bankers Association (MBA). The data, which show that nationally one in 10 homes were delinquent; 1 in 20 were seriously delinquent and 1 in 33 were in foreclosure as of Sept. 30, underscore the need for swift and effective solutions to mitigate the foreclosures that are at the root of the worst economic crisis in decades and the personal financial crises of millions of homeowners and their neighbors.

A new survey by the Federal Deposit Insurance Corp. underscores the need for regulatory and congressional action to stop banks from artificially increasing overdrafts without a customer's express consent, a practice that unfairly strips billions of dollars annually from checking accounts. The survey, taken of the banks the FDIC supervises, found that a majority of banks reported automatically enrolling customers into overdraft systems that impose a fee. Rules under consideration by the Federal Reserve Board would require banks to give customers the choice of opting out of the expensive, fee

The Honorable Barack ObamaPresident-Elect of the United Statesc/o Presidential Transition TeamWashington, DC[Via electronic delivery to John Podesta, Larry Summers, Tim Geithner] Dear President-Elect Obama, We, the undersigned leaders of the nation's foremost consumer, community, civil rights and legal services organizations, write to you to state our urgent concerns regarding the need to guarantee consumer and marketplace protections as a fundamental principle guiding both your nominee selections and policy proposals for agencies that deal with housing and credit policy. Collectively, our

Today, as the President-elect announces his economic team for the new Administration, the Center for Responsible Lending highlights the urgent need to stop the epidemic of foreclosures and restore a lending environment where ordinary Americans have access to sustainable loans without fearing financial ruin. "We commend the next Administration for assembling a talented and experienced team to address the economic crisis," said Mike Calhoun, president of the Center for Responsible Lending. "We believe this team understands the imperative to curb the losses to financial institutions and the

CRL has signed a joint letter with the American Bankers Association and other industry trade associations asking the Department of Housing and Urban Development to continue the FHASecure program at least through the end of next year. Extending the program, which otherwise will sunset in December of this year, is one of several vital steps federal officials and lawmakers must take to keep millions of families in their homes, and, in the process, stem the wave of foreclosures that are at the root of the country's economic crisis. A full copy of the letter follows. American Bankers

Lupe Solis, associate director of advocacy for AARP Arizona Ohio and Arizona voters sent a strong message to the payday industry Tuesday when they used the ballot box to reject abusive payday lending practices in their states. The thumbs-down vote in both states against predatory interest rates of 391 percent came despite a multimillion-dollar ad campaign by the payday industry intended to misinform and mislead the public. Ballot propositions in the two states were initiated by the industry and funded by over $30 million from the payday industry's trade association. By contrast, grass roots

Washington, DC - A survey of Detroit households suggests payday loans are no solution for those in financial need. The survey by University of Michigan law professor Michael S. Barr found that respondents using payday loans were more likely to file for bankruptcy, be evicted, or face utility shut-offs than respondents who had not taken a payday loan. Payday lenders have long argued that their loans are helpful to people who can't quite make it to their next paycheck, but research from the Center for Responsible Lending, based on data from state regulators and the payday lending industry itself