Poll: Strong Bipartisan Support for Consumer Financial Protection Bureau

A majority of Republican, Democratic and Independent voters across the nation support the work and mission of the Consumer Financial Protection Bureau, according to a recent national poll sponsored by the Center for Responsible Lending and Americans for Financial Reform. The poll also identified strong bipartisan support for consumer protections to guard against financial predators and for tough enforcement of those protections. The poll has been conducted since 2012 and support for the CFPB after voters hear a description of its purpose has been relatively consistent. This year, support for

US Department of Education Proposes Rules to Better Protect College Students, Federal Financial Aid Dollars

The comment period on the US Department of Education proposed rule governing college-bank marketing partnerships closes on Thursday, July 2. CRL senior policy counsel Maura Dundon submitted comments to the Department and offered the following remarks: The Department of Education's proposed rule governing college-bank partnerships is a good first step towards protecting students from unfair marketing practices and overdraft fees – but more must be done to ensure that federal financial aid disbursement does not become a way to unfairly add to college coffers and bank bottom lines. A way to get

Proposed Payday Lending Rules Will Enforce CA Law, Stop Payday Lending Abuses

Today, the Center for Responsible Lending (CRL) filed a public comment on urgently needed rules proposed by the California Department of Business Oversight (DBO) that would require payday lenders to follow California law by prohibiting the use of electronic transfers and debit cards in payday transactions. The rules would also create a new real-time electronic database to enforce existing law requirements that borrowers take out only one loan at a time. "The DBO's proposals will limit payday lender practices only to those activities actually authorized under the law and give DBO a real-time

New CFPB Report Finds Troubling Practices in Private Loan Servicing and Origination

On June 18, the Student Loan Ombudsman at the Consumer Financial Protection Bureau released a new report on the private student loan industry that sheds light on many troubling servicing practices affecting students and loan co-signers. CRL senior policy counsel Maura Dundon offered the following remarks: The Consumer Financial Protection Bureau's report confirms what consumers and consumer advocates have known for years: the servicing industry for private student loans is sorely in need of reform. The report reveals an industry plagued by poor customer service, breaches of contract, and even

CFPB, Department of Justice Take Action against Discriminatory Lending Practices

On May 28, the Consumer Financial Protection Bureau and the Department of Justice took enforcement action against Provident Funding Associates; the agencies found that the mortgage lender charged higher fees to African American and Hispanic borrowers. As early as 2006, the Center for Responsible Lending documented the pernicious extent of mortgage pricing disparities for borrowers of color by both brokers and lenders ("Unfair Lending", May 2006). CRL senior vice president Paul Leonard offered the following remarks: This action is a reminder that practices with racially discriminatory impacts

Federal Trade Commission takes Strong Action against For-Profit School Targeting Service Men and Women

Earlier this week, the Federal Trade Commission announced an enforcement action against the for-profit trade school Ashworth College. The federal agency charged the Georgia-based online college with misrepresenting their programs, leaving students with educations that could not lead to proper credentials or careers. CRL senior policy counsel Maura Dundon offers the following remarks: The complaint against Ashworth College gets to the heart of the troubling and persistent for-profit schools matter: students were purposefully misled, often through aggressive and deceptive marketing tactics, into

Senate Bill Would Eliminate Critical Post-Crisis Lending Rules

On May 12, Senator Richard Shelby unveiled a discussion draft of a bill that would, among other things, undermine key banking and mortgage reforms established by the landmark Wall Street Reform and Consumer Protection law. Center for Responsible Lending vice president Mitria Wilson offered the following remarks: For five years, post-crisis lending rules have made the financial system safer by eliminating abusive financial products, reining in reckless behavior, and encouraging more effective oversight. The draft legislation released by Senator Shelby seeks to gut these protections and rollback

New Department of Education Proposed Rule Will Protect Student Loan Funds by Stopping Banks and College from Teaming Up Against Students

The Department of Education announced today it would issue a strong proposed Cash Management rule. The rule would regulate the way colleges can enter into marketing agreements with banks and prepaid card issuers who wish to market to their student populations. It would ban overdraft and point-of-sale fees on some accounts - and require that all accounts be in the "best interests" of students. Center for Responsible Lending senior policy counsel Maura Dundon offers remarks on the Department's proposed rule: The Department of Education should be commended for its strong proposed Cash Management

Seven Ideas for a Fair Student Loan Servicing System

On May 14, the Consumer Financial Protection Bureau will hold a field hearing on student loan servicing and announce a formal Request for Information on the issue of student loan servicing, which may lead to a proposed student loan servicing rule. Center for Responsible Lending senior policy counsel Maura Dundon offers remarks on the consumer protection agency's announcement: Today, the amount of outstanding student debt is in excess of $1.2 trillion – second only to the amount of outstanding mortgage debt in the United States. In order to help borrowers successfully and responsibly pay off

CRL's Wilson Joins Panel on Predatory Finance

On Monday, May 11, 2015, Mitria Wilson, CRL vice president for government affairs, joined a congressional forum examining how mainstream financial service providers were not fully meeting the needs of many in the middle class – and many who aspire to it – for basic banking services like check cashing services and small dollar loans. The panel explored how this market is often filled by "alternative" financial service providers that sometimes employ predatory practices to trap consumers in a cycle of high fees and debt. Mitria and other panelists discussed steps to protect vulnerable