Press Releases
February 14, 2022
TAB Bank is helping EasyPay Finance evade state laws that prohibit 189% APR loans
WASHINGTON – In advance of National Love Your Pet Day on February 20, the Center for Responsible Lending, along with its Stop the Debt Trap coalition partners, is teaming up with animal welfare advocates to launch a campaign to stop TAB Bank from making predatory puppy loans, many of which go to buy puppies from puppy mills. At pet stores across the country, Transportation Alliance Bank (TAB Bank) is helping predatory lender EasyPay Finance evade state interest rate laws and make pet loans at 130% to 189% APR...
February 9, 2022
IDR program has failed borrowers for decades, organizations contend, calling on the Education Secretary to fulfill broken promises
WASHINGTON, D.C. — Today, a group of 104 diverse advocacy organizations, including American Federation of Teachers (AFT), National Education Association (NEA), and UnidosUS, sent a letter to the Biden administration, calling on U.S. Secretary of Education Miguel Cardona to reform broken, dysfunctional income-driven repayment (IDR) programs with the creation of an IDR restoration project or waiver. While student loan cancellation under IDR has been possible...
February 7, 2022
Washington D.C.— Lucia Mattox, the director of western states outreach and senior policy associate at the Center for Responsible Lending (CRL) made the following statement in response to recent reports that JPMorgan Chase, the nation’s largest bank with over $3.2 trillion in assets, has renewed a predatory practice called “robo-signing,” which occurs when companies filing lawsuits against consumers sign and churn out affidavits without verifying the validity of debts or pertinent documents:
Even as they continue to struggle with the impact of the COVID19 pandemic, tens of thousands of...
February 4, 2022
Today’s departure of FDIC Chair appointed by former President Trump presents a new opportunity for the agency to stop illegal loans with 100%+ APR that are exploiting financially vulnerable families
WASHINGTON, D.C. – With a new chairman taking the helm of the Federal Deposit Insurance Corporation (FDIC), the Center for Responsible Lending joined with more than a dozen other organizations in calling for the FDIC to “stop permitting its supervised institutions to front for predatory lenders evading state interest rate limits.” The letter, linked here, is addressed to the FDIC’s Board of...
January 13, 2022
Washington, DC – Today, Navient, one of the largest student loan servicers in the country, reached a $1.85 billion settlement with 39 states over predatory student loan practices.
In response, the Center for Responsible Lending (CRL) and the National Consumer Law Center (NCLC) released the following statement:
Navient’s history of steering borrowers into high-cost, long-term forbearances instead of placing them in affordable income-driven repayment (IDR) plans harmed millions of borrowers nationwide—many of whom were borrowers of color and low-income students.
This settlement...
January 12, 2022
Advocates Outline Path for the Biden Administration to “Do its Part” in Fixing IDR
Washington, DC -Today, the Center for Responsible Lending, Student Borrower Protection Center, and National Consumer Law Center released a whitepaper outlining why the U.S. Department of Education (ED) must act now, before the payment pause ends, to provide relief for the millions of federal student loan borrowers who have never seen the promise of income-driven repayment (IDR) forgiveness. This report outlines how the Biden administration can cut through the red tape that has long stymied the IDR program...
January 11, 2022
WASHINGTON, DC – Bank of America, America’s second-largest retail bank with about $2.35 trillion in assets, today announced it will reduce overdraft fees and non-sufficient funds (NSF) fees (aka bounced check fees) for its consumer banking customers.
Center for Responsible Lending (CRL) President Mike Calhoun issued the following statement:
Bank of America’s decision will provide much-needed relief for customers who least can afford the burden of overdraft fees and should lead other financial institutions to drop these fees that disproportionately impact low-income, Black and Latino...
January 7, 2022
Washington, D.C.— A coalition of public interest and advocacy organizations recently urged the Consumer Financial Protection Bureau (CFPB) to expand the data collection and reporting requirements under its proposed rule to implement changes to Section 1071 of the Dodd-Frank Wall Street Reform and Protection Act. The CFPB’s proposal would expand the data collection and reporting requirements in the small business lending market to include women-owned and minority-owned small businesses.
The Center for Responsible Lending (CRL), the National Association of Latino Community Asset Builders (...
December 22, 2021
79 Groups Ask CFPB to Provide Much Needed Oversight for Emerging Credit Products
WASHINGTON, D.C. — The Center for Responsible Lending, Consumer Federation of America, National Consumer Law Center, Student Borrower Protection Center, and 75 additional organizations called for Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra to carefully examine fintech credit products and fee models that are evading consumer protection laws and creating debt traps for consumers. Read their letter.
The groups applauded the CFPB for its recent inquiry into five large buy now, pay later...
December 22, 2021
WASHINGTON, D.C. – The Biden Administration announced today that it will extend the federal student loan payment pause until May 1st, 2022.
In response, Jaylon Herbin, outreach associate at the Center for Responsible Lending (CRL), made the following statement:
We commend the President for safeguarding student loan borrowers at a time of profound economic uncertainty. The extension of the payment pause is a critical step toward restoring economic stability for borrowers and their families. We urge the Biden Administration to continue extending the payment pause until the pandemic and the...