CRL in the News

For California borrowers trapped in loans with triple-digit interest rates, a proposed bill to impose a 36% cap might seem like a godsend. If passed, Assembly Bill 539 would end a decades-long practice of allowing installment loans of $2,500 to $10,000 to carry such high interest rates by limiting that number to 36%. But in striking a deal on the...

Sallie Mae, the student loan provider once sponsored by the government, is expanding into credit cards. The company this month unveiled a suite of three credit cards aimed at college students, recent graduates and young professionals. Its new cards offer rewards for responsible financial behavior. They come 18 months after the company introduced personal loans.

When you’re dealing with medical bills not covered by your insurance or car repairs not covered by your warranty, sometimes a personal loan has you covered. You could even use a personal loan for a non-emergency such as a home improvement project. However, you should always be on the lookout for fraudulent lenders. Personal loan scams specialize in taking advantage...

Hannah Hudson was one of the few high school graduates lucky enough to take a European summer vacation before the long slog of adulthood. Little did she know, she’d spend a half-day wondering how to cover her next meal after a series of overdraft fees from Bank of America left her more than $100 in debt. Halfway around the globe...

Bringing “real accountability to the Wild West of student loan servicing,” Maine lawmakers passed a “Student Loan Bill of Rights,” which will give the state the authority to investigate and intervene when borrowers complain of abusive or deceptive practices by student loan lenders. The bill, unanimously passed by the Maine Senate on Monday, moves now to Governor Janet Mills’ desk...

Millions of Americans have filed Chapter 7 bankruptcy to eliminate crippling debt and get a fresh financial start, but nowadays it isn’t unusual for people to come out of the process still owing much of their debt in the form of student loans, according to a report issued Tuesday by LendEDU. Based on anonymized data from 1,083 bankruptcy cases across...

Tim Worstall recently took issue with the Center for Responsible Lending’s position that payday loans should be capped at a 36% annual rate. He seemed troubled by the fact that with such a rate cap in place, payday lenders choose to no longer make their predatory loans. I’d like to offer some clarity. First, yes, it’s true — we do...

State lawmakers have again taken aim at the growing student-debt crisis in New Jersey, releasing a bill that former Gov. Chris Christie let die when he left office. The Assembly Higher Education Committee on Thursday passed S-1149/A-455 which would establish a student-loan ombudsman within the state Department of Banking and Insurance (DOBI). It would give DOBI the power to enforce...

You’ve seen them scattered along the outskirts of highways. It seems that around every corner, you’re bombarded with the opportunity to “get cash now!” And though the promise of instant funds is captivating, how wise is it to get that cash now? Not very, according to statistics. Payday loans, as they’re commonly referred to, are less about receiving money instantly...

In a bid to give consumers more choice when it comes to credit card and other disputes with corporations, two Democratic lawmakers are pursuing the Forced Arbitration Injustice Repeal Act. The bill would do away with forced arbitration clauses relating to credit card disputes. This means consumers would have the choice of opting for arbitration after a dispute erupts, instead...