CRL in the News

Banks that are starting to work with EWA providers to streamline connections for their commercial customers should pay close attention to what's happening in this tug-of-war over whether EWA will be considered a loan or not—according to Andrew Kushner, who is policy counsel of the nonprofit Center for Responsible Lending, which analyzes financial practices and works with the industry and...

Consumer advocates like Andrew Kushner, senior policy counsel at the Center for Responsible Lending, argue that some EWA services essentially act as payday loans--or "short-term, high-cost loans," as defined by the Consumer Financial Protection Bureau--and should be treated with the same regulatory scrutiny.

Harper’s remarks could be read as a thinly veiled criticism of CUNA and NAFCU for allying themselves with payday lenders and banks in attempts to strip the CFPB of its independence, moves that the Center for Responsible Lending has said would render the CFPB toothless.

Consumer advocates largely supported the CFPB’s framing of abusive practices. They called for tightening up some areas of the policy, including how the CFPB views a company’s intent when determining whether it’s taking “unreasonable advantage” of a consumer. “The policy statement recognizes that ‘intent is not a required element to show material interference’ but the Statement is not explicit on...

You should also determine which company is servicing your federal loan or loans so you’ll know whom to pay. Jaylon Herbin, director of federal campaigns for the Center for Responsible Lending, said there has been a lot of turnover among loan servicers in the 38 months since borrowers were last required to make a payment.

More than 37,800 student loan borrowers who were tricked by a student loan debt relief operation soon will share more than $3.3 million in restitution, thanks to enforcement action announced in mid-June by the Federal Trade Commission (FTC).

About 41 million student loan borrowers who would have been eligible for loan relief totaling nearly $3.9 billion, according to the Center for Responsible Lending (CRL), will now need to start paying back that debt in the fall. This also comes at a time when borrowers are now living through higher inflation and fears of a recession—factors likely to create...

Jaylon Herbin, director of federal campaigns for the Center for Responsible Lending, told Law360 that it will also be critical to ensure student loan servicers have the bandwidth to handle an influx of borrowers who will be returning to repayment this fall and may have questions or need help. "We also want to make sure that there's no predatory lending...

Much like payday loans, consumers who use EWA products may become dependent on the service to make ends meet, putting them at risk of falling behind on payments and getting hit with overdraft or non-sufficient funds fees, said Andrew Kushner, a policy counsel for the Center for Responsible Lending. “It’s really dishonest advertising. These products advertise themselves as having 0...

The Center for Responsible Lending and various other nonprofit groups had urged DeSantis, who is running for the Republican presidential nomination in 2024, to veto the bill. "We do not doubt that lenders will flock to Florida if you sign this bill into law since there are few states that allow lenders to charge borrowers 36% interest for loans up...