Today: House Hearing on Veterans Housing Proposal to Feature Testimony from CRL Expert Mitria Spotser

WASHINGTON, D.C. – Today at 3 pm et, the House Committee on Veterans Affairs will hold a legislative hearing on a discussion draft bill, the VA Housing Loan Forever Act of 2022. Click here for live video and all hearing documents. Click here for written testimony from Mitria Spotser, a consultant for the Center for Responsible Lending (CRL). In her testimony, Mitria Spotser states, “[E]nabling the transfer of VA home loan benefits would make homeownership more easily obtainable for many of the families of servicemembers that were denied the ability to utilize the program during their lives and

Financial Services and Consumer Groups Support Senate Bill to Close Industrial Loan Company Loophole

Washington, D.C. — Today, a broad coalition of financial services and consumer organizations wrote a letter expressing support for new legislation to close the industrial loan company (ILC) charter loophole, the “Close the Shadow Banking Loophole Act.” The legislation, introduced by Senate Banking Committee Chairman Sherrod Brown (D-OH), Sen. Bob Casey (D-PA) and Sen. Chris Van Hollen (D-MD), prohibits shadow banks and nonbank commercial entities from taking advantage of legal loopholes. These loopholes allow these companies to control a full-service FDIC-insured depository institution without

New Poll Shows Consumer Bureau Popular Among Republican, Independent and Democratic Voters

Americans strongly support rules to protect consumers from unfair financial practices, such as discrimination, excessive fees, and abusive lending and debt collection WASHINGTON, D.C. – A new poll released today shows voters across the political spectrum overwhelmingly back the mission of the Consumer Financial Protection Bureau (CFPB), financial regulation generally and a variety of new, specific consumer protections. The findings are released as the Supreme Court is poised to consider a lawsuit from payday lenders that could invalidate the CFPB’s funding mechanism, which would undermine its

Student Loan Payment Pause Extended to Help Borrowers While Legal Challenges Are Resolved

Washington, D.C.– The Department of Education (ED) yesterday announced it has extended the pause of student loan repayment, interest and collections through June 30, 2023. The announcement comes as the administration awaits a requested Supreme Court ruling regarding lawsuits that have prevented its student loan cancellation plan from moving forward. Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending (CRL), made the following statement: Tens of millions of student loan borrowers are relying on the courts to uphold the legality of the cancellation plan. As U.S

Statement in Response to Biden Administration’s New Student Loan Bankruptcy Discharge Policies

Washington, D.C.– The Department of Education (ED) and Department of Justice (DOJ) announced yesterday policy changes to the bankruptcy discharge process for student loan borrowers. The new changes simplify and standardize the process for economically distressed borrowers to discharge their debts. Whitney Barkley-Denney, deputy director of state policy and senior policy counsel at the Center for Responsible Lending (CRL), made the following statement: For decades, it has been nearly impossible for students to get their debts discharged through bankruptcy. The announcement is long overdue and

New CRL Video Explains Why ‘Buy Now Pay Later’ Market Should Be Subject to Consumer Protections

New Product is Credit and Should be Regulated as Such WASHINGTON, DC – As the shopping season arrives, the Center for Responsible Lending (CRL) today released a short video explaining concerns about the exploding Buy Now Pay Later market and calling for the credit product to carry the same protections as credit cards. Buy Now Pay Later offers appear online as consumers are shopping for a wide range of products. In the typical arrangement, shoppers can opt to make four payments over six weeks. While this could be convenient, the product may have hidden costs and risks, including late fees

CRL Applauds Nomination of Martin Gruenberg for FDIC Chair

WASHINGTON, D.C. – Following the White House’s announcement that it would nominate Martin Gruenberg to serve as Chair of the Federal Deposit Insurance Corporation (FDIC), Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement: We applaud President Biden’s nomination of Marty Gruenberg for FDIC Chair. Marty is an experienced leader with a strong track record of protecting depositors, taxpayers, and consumers. The U.S. Senate should confirm his nomination without delay. We look forward to continued work with Marty toward a fair, inclusive financial

Student Loan Debt Plagues HBCU Students, Prevents Wealth Building, According to New Report

WASHINGTON, D.C. – The high burden of student loan debt limits the future financial options of graduates of Historically Black Colleges and Universities (HBCU) and breaks the promise of a college education as a great equalizer, according to a new research report published today by the Center for Responsible Lending (CRL). The report, “Paying from the Grave,” highlights the impacts of systemic racism on wealth accumulation for families and unequal resource distribution among institutions. The research finds that student debt prevents many HBCU graduates from engaging in wealth-building

Consumer Groups Applaud Federal Legislation to Protect Workers from Excessive Wage Seizure

Washington, D.C. – The Center for Responsible Lending (CRL) and National Consumer Law Center (NCLC) today expressed support for the Protecting Wages of Essential Workers Act of 2022 (Protecting Wages Act). The bill will ensure that working Americans who hold consumer debt are not hit with excessive wage seizures that leave them unable to afford necessities. The legislation also prohibits debt collectors from using threats of jail to coerce payment of a debt. The Protecting Wages Act (H.R.9224), introduced this week by Rep. Alma Adams (D-NC), is designed to better protect families coping with

CRL Statement in Response to Federal Court’s Decision to Temporarily Block Student Debt Forgiveness

WASHINGTON, D.C. – A federal appeals court last week temporarily stopped the Biden administration’s student debt cancellation plan, which is set to provide up to $20,000 in relief to eligible graduates from the nation’s more than 44 million student loan borrowers. In response, Jaylon Herbin, outreach and policy manager for the Center for Responsible Lending (CRL), made the following statement: Opponents of student debt relief are trying to prevent millions of Americans, including Black women and low-wealth borrowers disproportionately burdened by student debt, from enjoying wealth-building