CRL in the News

While we don’t have a central database on total debt, different studies can shed light on the types of consumers who use BNPL services. There are some data points about BNPL users that suggest they’re “financially vulnerable,” said Nadine Chabrier, senior litigation and policy counsel at the Center for Responsible Lending.

Critics say the bill as drafted exempts app-based lenders from state laws that “prohibit lending that is discriminatory, is deceptive, or carries extremely high interest rates.” The Center for Responsible Lending said in a statement that the new law makes it easier for Marylanders to be sucked into “financial quicksand” because of payday loan apps. “The bill becoming law but...

EWA providers make their money from repeat users, said Whitney Barkley Denney, deputy director of state policy and senior policy counsel at the Center for Responsible Lending. “They take out maybe $50 or $100 before payday, payday comes around, they don't have the $50 or $100 on payday, so they need to borrow it again,” she said. “And so we...

For more than a decade, consumers have lauded the Consumer Financial Protection Bureau (CFPB) for its myriad accomplishments that have brought transparency and fairness to the financial marketplace. Earlier this year, a survey commissioned by the Center for Responsible Lending found that 82 percent of Americans believe it is important to regulate financial services to ensure they are fair for...

Consumer groups like the National Consumer Law Center and the Center for Responsible Lending have long argued that overdraft fees disproportionately impact low-income households. These reforms are intended to protect vulnerable consumers and reduce the risk of debt spirals caused by repeated fees.

Data from the Center for Responsible Lending paints a troubling picture. Over 25% of Marylanders using these apps take out 25 or more advances per year. Nearly half use two or more apps simultaneously. These are the same debt-trap patterns we saw with storefront payday lending.

Consumer advocacy groups, including the NCLC and the Center for Responsible Lending (CRL), argue that the 36% rate cap should be rolled out to all consumers, which would essentially eradicate payday and other high-cost lending nationwide.

"You reach out in a moment of desperation and then they lock you in," said Ellen Harnick, the executive vice president of the Center for Responsible Lending. "Plain Green Loans is one of the notorious companies. They flout state interest rate limits. And tout themselves as providing 'access to credit.' But this isn't credit. This is real harm."

The chaos and confusion resulting from systemic changes and closures at multiple federal agencies have now reached the $242 billion budget of the Department of Education. With the agency’s workforce cut in half, and plans announced to shut it down, millions of students and families who rely on federal financial aid for higher education are facing a front-line assault.

“People with low incomes really bear the brunt of this,” said Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending. Consumers also won’t see lower fees when they pay their credit card bills late.