Chase’s Predatory Robo-Signing Practices Threaten Financial Security of Its Customers

Washington D.C.— Lucia Mattox, the director of western states outreach and senior policy associate at the Center for Responsible Lending (CRL) made the following statement in response to recent reports that JPMorgan Chase, the nation’s largest bank with over $3.2 trillion in assets, has renewed a predatory practice called “robo-signing,” which occurs when companies filing lawsuits against consumers sign and churn out affidavits without verifying the validity of debts or pertinent documents: Even as they continue to struggle with the impact of the COVID19 pandemic, tens of thousands of American

Advocates Call for FDIC, under New Leadership, to Stop Banks from Fronting for Predatory Lenders

Today’s departure of FDIC Chair appointed by former President Trump presents a new opportunity for the agency to stop illegal loans with 100%+ APR that are exploiting financially vulnerable families WASHINGTON, D.C. – With a new chairman taking the helm of the Federal Deposit Insurance Corporation (FDIC), the Center for Responsible Lending joined with more than a dozen other organizations in calling for the FDIC to “stop permitting its supervised institutions to front for predatory lenders evading state interest rate limits.” The letter, linked here , is addressed to the FDIC’s Board of

Navient Reaches $1.85 Billion Settlement for Defrauding Millions of Students

Washington, DC – Today, Navient, one of the largest student loan servicers in the country, reached a $1.85 billion settlement with 39 states over predatory student loan practices. In response, the Center for Responsible Lending (CRL) and the National Consumer Law Center (NCLC) released the following statement: Navient’s history of steering borrowers into high-cost, long-term forbearances instead of placing them in affordable income-driven repayment (IDR) plans harmed millions of borrowers nationwide—many of whom were borrowers of color and low-income students. This settlement requires Navient

Borrower Advocates Demand that Education Department Restore the Promise of Income-Driven Repayment

Advocates Outline Path for the Biden Administration to “Do its Part” in Fixing IDR Washington, DC - Today, the Center for Responsible Lending, Student Borrower Protection Center, and National Consumer Law Center released a whitepaper outlining why the U.S. Department of Education (ED) must act now, before the payment pause ends, to provide relief for the millions of federal student loan borrowers who have never seen the promise of income-driven repayment (IDR) forgiveness. This report outlines how the Biden administration can cut through the red tape that has long stymied the IDR program and

CRL Praises Bank of America for Reducing Overdraft Fee

WASHINGTON, DC – Bank of America, America’s second-largest retail bank with about $2.35 trillion in assets, today announced it will reduce overdraft fees and non-sufficient funds (NSF) fees (aka bounced check fees) for its consumer banking customers. Center for Responsible Lending (CRL) President Mike Calhoun issued the following statement: Bank of America’s decision will provide much-needed relief for customers who least can afford the burden of overdraft fees and should lead other financial institutions to drop these fees that disproportionately impact low-income, Black and Latino Americans

Broad Coalition Urges CFPB Robust Data Reporting Requirements for Small Businesses

Washington, D.C.— A coalition of public interest and advocacy organizations recently urged the Consumer Financial Protection Bureau (CFPB) to expand the data collection and reporting requirements under its proposed rule to implement changes to Section 1071 of the Dodd-Frank Wall Street Reform and Protection Act. The CFPB’s proposal would expand the data collection and reporting requirements in the small business lending market to include women-owned and minority-owned small businesses. The Center for Responsible Lending (CRL), the National Association of Latino Community Asset Builders (NALCAB

Broad Coalition Urges CFPB to Examine Fintech Credit Products and Fee Models

79 Groups Ask CFPB to Provide Much Needed Oversight for Emerging Credit Products WASHINGTON, D.C. — The Center for Responsible Lending, Consumer Federation of America, National Consumer Law Center, Student Borrower Protection Center, and 75 additional organizations called for Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra to carefully examine fintech credit products and fee models that are evading consumer protection laws and creating debt traps for consumers. Read their letter. The groups applauded the CFPB for its recent inquiry into five large buy now, pay later providers

CRL Applauds Extension of the Federal Student Loan Payment Pause

WASHINGTON, D.C. – The Biden Administration announced today that it will extend the federal student loan payment pause until May 1st, 2022. In response, Jaylon Herbin, outreach associate at the Center for Responsible Lending (CRL) , made the following statement: We commend the President for safeguarding student loan borrowers at a time of profound economic uncertainty. The extension of the payment pause is a critical step toward restoring economic stability for borrowers and their families. We urge the Biden Administration to continue extending the payment pause until the pandemic and the

CRL Commends Consumer Financial Protection Bureau for Starting Inquiry into “Buy Now, Pay Later” Credit

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it is opening an inquiry into large “Buy Now, Pay Later” (BNPL) lenders. “Use of ‘Buy Now, Pay Later’ credit has exploded, so it is important that we understand the impacts of this debt. In opening this inquiry, the Consumer Bureau is taking a great first step in learning about this industry and toward preventing harm to consumers,” said Center for Responsible Lending (CRL) Director of California Policy Marisabel Torres . Watch and read Ms. Torres’s recent testimony before Congress on BNPL and other fintech

CRL Statement on Nomination of Sandra Thompson to Full Term as FHFA Director

WASHINGTON, DC – Today President Biden nominated Sandra Thompson to a full five-year term as Director of the Federal Housing Finance Agency (FHFA) – the federal regulator that oversees Fannie Mae and Freddie Mac. Mike Calhoun, president of the Center for Responsible Lending, issued the following statement: “Sandra Thompson has provided strong leadership at FHFA as Acting Director, ensuring that Fannie Mae, Freddie Mac and the Federal Home Loan Banks meet their mandates to safely support lenders in providing sustainable financing for families to buy homes and start and build businesses,” said