Consumer Financial Protection Bureau Sues Corinthian Colleges

Yesterday, the Consumer Financial Protection Bureau (CFPB) sued Corinthian Colleges, Inc., the for-profit college company. The consumer protection agency claims that Corinthian engaged in deceptive and predatory lending practices in an effort to recruit students, get them to take out private student loans, and then to collect on those loans. Maura Dundon, senior policy analyst at CRL, issued the following statement: Corinthian Colleges, one of the largest for-profit colleges companies in the United States, has long engaged in reprehensible practices that leave students with worthless debt. The

Chris Kukla Testifies at CFPB Hearing on Auto Lending

Today, at a Consumer Financial Protection Bureau (CFPB) Indianapolis field hearing on auto lending practices, Center for Responsible Lending Senior Vice President Chris Kukla testified about abuses in the market. Kukla, who leads CRL's auto lending team, highlighted the auto dealer interest rate markup and a number of issues in the subprime auto loan market that have been the subject of recent media scrutiny. The text of Kukla's opening statement is below: Thank you, Patrice. Director Cordray, thanks also to you and your staff for holding this hearing, and for providing me the opportunity to

Dear DC Council, Please Protect Consumers from Abusive Debt Collection

In a letter sent today, the Center for Responsible Lending (CRL) along with several other groups - Legal Aid Society of the District of Columbia, District of Columbia Consumer Rights Coalition, Consumers Union, National Association of Consumer Advocates, National Consumers League, and U.S. PIRG - asked Councilmember Vincent Orange, the Chair of the Council's Committee on Business, Consumer and Regulatory Affairs, to schedule a hearing and committee markup on legislation designed to protect consumers from unscrupulous debt buyers' abusive collection tactics. The group also urged other members

Groups Welcome New Guidelines for Banks Selling Old Consumer Debt to Debt Collectors

Civil rights, consumer, and community groups lauded the Office of the Comptroller of the Currency (OCC) for issuing strong guidance this week regarding banks' selling of charged-off consumer debts to debt buyers. The groups urged the agency to also take the next step and issue strong regulations to ensure that national banks do not continue to facilitate unfair, deceptive, and abusive debt collection practices. "This guidance is one of the first actions taken by a federal regulator to address the way banks sell off their old debt," said Lisa Stifler of the Center for Responsible Lending. "The

DOJ, US Attorney of Southern New York Cast Light on Subprime Auto Lending

The New York Times reported that the US Department of Justice has issued a subpoena to General Motor's finance subsidiary. The DOJ subpoena specifically asks for information about auto loan underwriting criteria and how loans are securitized and sold to investors. The same NYT article noted that the office of US Attorney for the Southern District of New York is also investigating the subprime auto lending market. US attorney Preet Bharara is reviewing the soundness of auto loan securities and whether the credit-worthiness of borrowers was accurately conveyed to investors. In response to this

Banks Fees Exceed Overdraft Amounts, CFPB Study Finds

Today, the Consumer Financial Protection Bureau released a report highlighting the need for robust reform on bank overdraft practices. In response Center for Responsible Lending president Mike Calhoun comments: Today's release underscores the urgent need for reform on banks fees – particularly the practice of tacking on fees on debit card transactions that could be denied at no cost. A report by the Consumer Financial Protection Bureau found that overdraft fees on debit cards typically exceed the amount of the overdraft itself. The CFPB's examination found that the median debit card

Banks Fees Exceed Overdraft Amounts, CFPB Study Finds

Today, the Consumer Financial Protection Bureau released a report highlighting the need for robust reform on bank overdraft practices. In response Center for Responsible Lending president Mike Calhoun comments: Today's release underscores the urgent need for reform on banks fees – particularly the practice of tacking on fees on debit card transactions that could be denied at no cost. A report by the Consumer Financial Protection Bureau found that overdraft fees on debit cards typically exceed the amount of the overdraft itself. The CFPB's examination found that the median debit card

Consumer Groups Applaud CFPB and Attorneys General Action to Protect Servicemembers From Hidden Interest Charges and Abusive Debt Collection Practices

Washington, D.C. – Today, the Consumer Financial Protection Bureau and 13 state attorneys general issued an enforcement action against Colfax Capital Corporation and Culver Capital, LLC, known as Rome Finance, for targeting servicemembers and consumers with expensive debt that was not properly disclosed and for attempting to collect illegal debts. The Consumer Federation of America, Americans for Financial Reform, National Association of Consumer Advocates, Center for Responsible Lending, and the National Consumer Law Center (on behalf of its low-income clients) issue the following statement

CFPB Unveils Changes to the Home Mortgage Disclosure Act

Today, the Consumer Financial Protection Bureau released a proposed rule to improve the Home Mortgage Disclosure Act (HMDA). In response Center for Responsible Lending president Mike Calhoun comments: We congratulate the Consumer Financial Protection Bureau for the agency's continued commitment to responsible lending. This is an important step forward in using data and transparency to promote fair lending. Since the Home Mortgage Disclosure Act was enacted, it has provided critical information to both the public and financial sectors – information that has been used to identify housing trends

Citigroup to Pay $7 Billion for Subprime Mortgage Scams

Today, the US Department of Justice announced a $7 billion settlement with Citigroup; the financial institution will pay a record-setting $4 billion penalty for misleading investors about securities that included toxic mortgages. Center for Responsible Lending executive vice president Debbie Goldstein comments on the settlement below. CRL is a nonprofit research and advocacy organization focused on consumer lending. In December 2006, CRL published Losing Ground, the first comprehensive, nationwide review of millions of subprime mortgages and predicted the subprime mortgage crisis that began in