CRL in the News

"From a broad policy standpoint, looking at the economics of lending, there is a trade-off between interest rates and costs to have a profitable model," said Mike Calhoun, president of the Center for Responsible Lending, who cited the "congressional recognized standard" of 36% in the Military Lending Act. "High interest rates means a large percentage of your loans are unaffordable."

“At the heart of this proposed rule is the reasonable and widely accepted idea that payday and car title loans should be made based on the borrower’s actual ability to repay – while still meeting other basic living expenses,” Mike Calhoun, president of the Center for Responsible Lending, said of the new CFPB rule.

Fees charged by the payday and car title loan industry cost Ohioans more than $500 million a year, mostly affecting residents who are already struggling financially, according to a Center for Responsible Lending report released last year.

In addition to the CFPB report, the Center for Responsible Lending issued a report of its own this week which found that every year, consumers lose $8 billion in fees to payday and car-title loans. Of that, car title loans represent $3.9 billion in fees each year.

Delvin Davis, senior research analyst at the Center for Responsible Lending, said even a high-interest credit card might be a better option than a car title loan. “I would avoid them at all costs,” he said. “Once you are into it, it’s hard to get out of it.”

Google announced Wednesday that it will ban all payday loan ads from its site, bowing to concerns by advocates who say the lending practice exploits the poor and vulnerable by offering them immediate cash that must be paid back under sky-high interest rates. The decision is the first time Google has announced a global ban on ads for a broad...

"We support a front-end ability-to-repay requirement and generally oppose exemptions," said Diane Standaert, executive vice president and director of state policy at the Center for Responsible Lending. "We don't think that an income-based assessment is enough to ensure that the loan will be safe."

There is something, however, auto loans of all sorts share with housing loans that should concern us: a history of discrimination. A 2014 report by the Center for Responsible Lending revealed that blacks and Latinos are more likely to get sold add-on products when purchasing a car—and dealers often told them if they didn’t agree to take on the extra...

Are delinquencies and possible defaults on the rise, creating a Groundhog Day type scenario no one wants to relive? “With reputable companies like Moody’s and Fitch Ratings drawing attention to this occurrence, it's normal to be concerned,” says Christopher Kukla, executive vice president from the Center for Responsible Lending.

"There are six million homeowners who are under water," said Calhoun. But many of them did not finance their mortgages through Fannie or Freddie, and, critically, "many of them are making their payments on time," he said. Jim Parrott, a senior fellow at the Urban Institute, said the economy has improved the lot of homeowners who have held on this...