CRL Statement on FDIC Board Members’ Push to Review Bank Merger Guidelines

“Lack of competition in the banking sector can drive up prices for consumers and stifle economic growth and innovation,” said Mike Calhoun, president of the Center for Responsible Lending. “We need more robust scrutiny of the disproportionately negative impact bank mergers can have on communities of color, rural and low-income Americans. The FDIC should be taking affirmative steps to promote competition and financial fairness for consumers and businesses.” ### Press Contact: Alfred King

CRL Praises Capital One for Eliminating Overdraft Fees

WASHINGTON, D.C. – This morning, Capital One, America’s sixth-largest retail bank, announced a complete end to all overdraft fees and non-sufficient fund (NSF) fees (aka bounced check fees) for its consumer banking customers. It is the only bank among the ten largest to take this step. Center for Responsible Lending (CRL) President Mike Calhoun issued the following statement: The people who are most frequently charged overdraft are the people who can least afford it. This financial burden falls disproportionately on low-income and Black and Latino Americans. The high cost of repeat overdraft

CRL Calls for Congress to Pass Build Back Better Act with Historic Housing Investments

WASHINGTON, D.C. – Today, the Center for Responsible Lending called for Congress to pass the Build Back Better Act. The bill aims to combat climate change and strengthen our nation’s human infrastructure, including through an historic investment in housing. Center for Responsible Lending President Mike Calhoun issued the following statement: The Build Back Better Act would make much-needed investments in the affordability, supply, and maintenance of housing for American families. This legislation would constitute a major step toward ensuring everyone has a decent and affordable place to call

CRL Backs Bipartisan Bill to Limit Interest Rates on Consumer Loans

WASHINGTON, D.C. – The Center for Responsible Lending (CRL) today announced its support for bipartisan legislation that would limit the interest rate on consumer loans to no more than 36% Annual Percentage Rate (APR). U.S. Congressmen Jesús “Chuy” García (D-Ill.) and Glenn Grothman (R-Wis.) earlier this week introduced the Veterans and Consumers Fair Credit Act. The bill, H.R. 5974, would extend existing interest rate limit protections currently in place for active-duty military servicemembers and certain dependents to veterans and all other Americans. Identical legislation, S. 2508, has

Majority of Black College Students Support Loan Cancellation, as Underfunding of HBCUs Compounds Financial Challenges

New research and documentary film illuminate heavy debt burdens and financial struggles of Black graduates of HBCUs WASHINGTON, DC (Nov. 9, 2021) — More than 87% of Black students who attend historically Black colleges and universities (HBCUs) strongly support debt cancellation. In addition, more than 90% of Black borrowers support other policy solutions to address the institutional funding disparities and lack of family wealth that leave Black HBCU graduates with significantly higher student loan debt burdens than their White peers, according to a national study and focus groups conducted by

In Congressional Testimony, CRL Calls for Buy Now Pay Later and other Fintech Products to be Monitored and Regulated

WASHINGTON, D.C. – Center for Responsible Lending (CRL) Director of California Policy Marisabel Torres is currently testifying before the House Financial Services Committee’s Task Force on Financial Technology for a hearing titled “Buy Now, Pay More Later? Investigating Risks and Benefits of BNPL and Other Emerging Fintech Cash Flow Products.” Watch the hearing and to read text of both her oral and written testimonies. In her written testimony, Ms. Torres states: We are particularly concerned that without vigilant monitoring and appropriate regulation, products that promise to promote

Bank Regulators’ Proposal on Third-Party Relationships Silent on Predatory Rent-a-bank Lending, Posing Risks for Banks and Consumers

WASHINGTON, D.C. – Today, the Center for Responsible Lending , the Consumer Federation of America , the National Consumer Law Center , on behalf of its low-income clients, and the National Fair Housing Alliance released their comment letter to the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Federal Reserve Board (FRB) on the regulators’ “Proposed Interagency Guidance on Third-Party Relationships: Risk Management.” The comments noted that the guidance is silent about rent-a-bank lending, whereby a bank rents out its charter to a financial

Organizations Receive $250,000 Grant to Help Entrepreneurs of Color Start and Grow Businesses

WASHINGTON – Three national advocacy organizations today announced they have received a $250,000 grant to engage with policymakers and address systemic challenges that prevent Asian American, Pacific Islander, Latinx and Black entrepreneurs and micro-entrepreneurs from being able to start and grow businesses. The National Coalition for Asian Pacific American Community Development (National CAPACD), National Association for Latino Community Asset Builders (NALCAB) and Center for Responsible Lending (CRL) will use the Rebuilding Together grant from the Ewing Marion Kauffman Foundation to

CFPB Urged to Reverse Earned Wage Actions that Threaten to Create Dangerous Fintech Payday Loan Loopholes

Opinion and Order Under Former Director Kraninger Promote Evasions of Credit, Fair Lending, and Payday Loan Laws WASHINGTON, DC – A coalition of 96 consumer, labor, civil rights, legal services, faith, community and financial organizations and academics is urging the Consumer Financial Protection Bureau (CFPB) to revoke or significantly revise two actions taken in late 2020 regarding earned wage access (EWA) products. The groups’ letter argued that the CFPB’s EWA advisory opinion and PayActiv approval order, which declared certain EWA programs not to be “credit,” threaten to create loopholes

New California DFPI Report on Consumer Lending

OAKLAND, CA – Following release of a new California Department of Financial Protection and Innovation (DFPI) report, Center for Responsible Lending Director of California Policy Marisabel Torres issued the following statement : This report is the first since California’s groundbreaking law capping annual interest rates at 36% went into effect. The data show that the law essentially eliminated triple-digit interest rate loans that are between $2,500 and $10,000, which is a significant victory in protecting consumers from these predatory products. California policymakers should now take the next