Buy Now Pay Later Rule is a Step Forward for Consumer Protection

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule for Buy Now Pay Later (BNPL) lenders. “We welcome this rule as a step toward ensuring consumers have the protections that they reasonably expect from a credit card. We look forward to the CFPB’s continued work in this market,” said Nadine Chabrier, litigation and policy counsel at Center for Responsible Lending. “Like other credit card issuers, BNPL lenders will be required to investigate disputes, help facilitate returns and refunds for purchases and provide billing statements. It makes sense

Education Department Should Expand Forgiveness of Capitalized Interest to Help Low-Income Borrowers

WASHINGTON, D.C. – The Center for Responsible Lending (CRL) urged the U.S. Department of Education to amend their notice of proposed rulemaking to expand forgiveness of capitalized interest— unpaid interest that is added to the principal of the loan— in a comment letter submitted Friday evening. “We support the Administration’s proposal and believe that these regulatory changes will have a positive impact on millions of student loan borrowers because waiving interest capitalization serves as a tool to address the disproportionate effects of student loan debt on low-income borrowers,” said

Supreme Court Rules CFPB Funding is Constitutional in Win for Consumers

WASHINGTON, D.C. – The U.S. Supreme Court just announced that the secure, independent funding structure of the Consumer Financial Protection Bureau is constitutionally sound, thereby averting the economic and political chaos that an adverse ruling likely would have caused. The case, Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association of America, Limited (CFSA), was originally brought by CFSA, a trade association for payday lenders. “This ruling enables the immensely popular Consumer Financial Protection Bureau to keep doing its job as a watchdog agency that

Richard Cordray Steps Down from Federal Student Aid

WASHINGTON, DC – Richard Cordray, the chief operating officer of the U.S. Department of Education’s Federal Student Aid office, announced late last week that he was resigning from the agency. He is expected to formally leave his post at the end of June. Michael Calhoun, president of the Center for Responsible Lending, issued the following statement: Richard Cordray’s leadership was transformational. Since starting his tenure in 2021, he improved the application process for programs like Public Service Loan Forgiveness and Income Driven Repayment, helping millions of eligible borrowers receive

Resignation of Ginnie Mae President Alanna McCargo

WASHINGTON, DC -- Ginnie Mae president Alanna McCargo announced late last week that she was resigning from the agency effective May 3. Michael Calhoun, president of the Center for Responsible Lending, issued the following statement: Alanna McCargo was an advocate for sustainable, equitable and affordable housing, and she ensured that Ginnie Mae remained focused on its mission to increase access to credit, both in good times and periods of market stress. We commend her work to support the stability of the secondary market and improve outcomes for households and communities, including

Labor, Civil Rights and Consumer Groups Oppose House Bills That Facilitate Predatory “Fintech” Lending

Groups say bills before House committee hide true cost of cash advance apps, erase consumer protections WASHINGTON, D.C. – The U.S. House of Representatives Financial Services Committee will vote tomorrow morning on several pieces of legislation that could harm consumers. The Center for Responsible Lending (CRL) joined dozens of advocacy organizations in letters opposing two of these bills: the “Earned Wage Access Consumer Protection Act” (H.R. 7428) and “The Financial Services Innovation Act” (H.R. 7440). “High-cost lenders have a well-documented history of targeting and exploiting for profit

Biden-Harris Administration Releases Draft Rules Proposing Student Debt Relief for Tens of Millions of Borrowers

Washington, D.C., — The Biden administration announced today its first set of draft rules proposing billions in student debt forgiveness to more than 30 million borrowers, including those whose balances have grown from accrued interest and have been in repayment for years. In response, Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending (CRL), made the following statement: For years, CRL has advocated for the elimination of accrued interest that prevents millions of low-income borrowers from repaying their loans and breaking free from a cycle of

CFPB Should Strengthen Consumer Protections in its Proposed Overdraft Rule

WASHINGTON, D.C. – The Center for Responsible Lending (CRL) in a comment letter urged the Consumer Financial Protection Bureau (CFPB) to bolster its proposed overdraft rule with more measures to prevent very large banks and credit unions from evading the intent behind the rule. The CFPB estimates that, once finalized, its rule could save the 23 million households who pay overdraft fees an average of $150 each year – while the hardest-hit households could save much more. “High-cost overdraft fees are junk fees paid most often by the least financially secure bank customers. The CFPB’s proposed

New VA Program to Provide Home Loan Assistance to Active-Duty Servicemembers and Veterans

Advocates Praise Program and Call for Foreclosure Pause Until It is Fully Implemented WASHINGTON – Today, the U.S. Department of Veterans Affairs released its VA Servicing Purchase (VASP) program to help VA borrowers facing financial hardships avoid unnecessary foreclosures. Through VASP, the agency will modify and purchase qualifying loans in default to provide meaningful payment assistance to VA borrowers in financial distress. Consumer advocates at the National Consumer Law Center (NCLC) and the Center for Responsible Lending (CRL) expressed support for the new program and urged the VA to

CRL Applauds New Biden-Harris Administration Plan to Deliver Student Debt Relief to Millions of Americans

Washington, D.C., — The Biden administration announced today a new set of plans that would provide student debt relief to more than 30 million borrowers. If enacted, the proposals would waive accrued and capitalized interest— unpaid interest that is added to the principal of the loan— for millions of low-income borrowers, and up to $20,000 in unpaid interest for other impacted borrowers. The proposals would also make a new group of borrowers eligible for forgiveness without requiring their enrollment in the Saving on a Valuable Education (SAVE) program. In response, Nadine Chabrier, senior