Earned Wage Access: Early Payday or Payday Loan?

Kate Fitzgerald | American Banker
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 regulators to improve the state of lending, especially for marginalized groups. Kushner explained why there's a widespread perception among banks and fintechs that EWA is not a loan and not subject to the

Harper Calls for More Attention to Consumer Financial Protection

Jim DuPlessis | Credit Union Times
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.

Banks Slam Consumer Watchdog’s Efforts to Define ‘Abusive’ Acts

Evan Weinberger | Bloomberg
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 this point when it addresses acts or practices that take ‘unreasonable advantage’ of consumer vulnerabilities,” the Center for Responsible Lending said in a comment letter.

What should borrowers do now that Biden’s college debt forgiveness plan is dead?

Jon Healey | Los Angeles Times
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.

Supreme Court Strikes Down Biden’s Student Loan Forgiveness Plan

Rachel Witkowski, Caren Weiner | Forbes
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 rising defaults.

Biden Airs Plan B After Justices Nix $430B Student Debt Relief

Jon Hill | Law 360
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 taking place within the higher education system," Herbin said.

Popular Apps for Early Payday Draw Critics Citing 330% Rate Risk

Paulina Cachero | Bloomberg Government
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 APR,” he said. “Earned wage access products are just payday loans with a fintech veneer.”