CRL Statement on Extension of Federal Student Loan Payment Pause

WASHINGTON, D.C. – The Biden Administration announced today that it will extend the federal student loan payment pause until August 31st, 2022. In response, Jaylon Herbin, outreach and policy manager at the Center for Responsible Lending (CRL) , made the following statement: The latest extension of the federal student loan payment pause signals the need for a more permanent solution – specifically, widespread student loan cancellation – for the nation’s $1.7 trillion student debt crisis. While we applaud the Administration for allowing borrowers who were in delinquency or default to receive a

Banks, Credit Unions and Consumer Groups Call for Passage of Bipartisan Solution to Close ILC Loophole

Washington, D.C. — A broad coalition of bank and credit union associations and consumer organizations submitted a letter today to the U.S. House Committee on Financial Services urging passage of the Close the ILC Loophole Act , introduced by Representatives Chuy Garcia (D-IL) and Lance Gooden (R-TX). The ILC loophole allows large technology companies — such as Japanese e-commerce firm Rakuten, whose primary business is monetizing consumer data — and other commercial firms to own and operate what is essentially a full-service FDIC-insured bank, and do so entirely free from the regulatory

Income-Share Agreements Burden Women, Students of Color with Unfair Terms and Unforeseen Costs

WASHINGTON, D.C. — Borrowers using both federal student loans and Income-Share Agreements (ISAs) could pay as much as 25 percent of their discretionary income in repayment for a decade, according to a report published today by the Center for Responsible Lending (CRL) . The report also found that ISA underwriting criteria could lead to negative impacts for women and people of color. Marketed as innovative alternatives to student loans, ISAs are private loan products that allow lenders to require students to make payments in exchange for a percentage of their future earnings for a fixed number

CRL Praises Citigroup for Eliminating Overdraft Fees

Calls for federal regulators to protect all Americans from harmful overdraft fees WASHINGTON, D.C. – Citigroup (Citi), one of the five largest banks in America, announced yesterday it will end all overdraft fees and non-sufficient fund fees (aka bounced check fees). It is the biggest bank thus far to do this. Center for Responsible Lending (CRL) Policy and Litigation Counsel Nadine Chabrier issued the following statement: Overdraft fees kick people when they are down. Their costs are borne by financially vulnerable consumers. These fees disproportionately harm Black and Latino Americans with a

Credit Issues After Transgender and Nonbinary Individuals File a Legal Name Change

Today, 145 organizations sent a letter to the “Big Three” credit bureaus (Equifax, Experian, and Transunion) and to the Consumer Data Industry Association (CDIA), the trade association that represents them, urging them to take needed actions to correct credit report problems for transgender and nonbinary consumers. The signatory organizations include LGBTQI+ advocacy organizations, community centers, chambers of commerce, businesses, and community groups, as well as consumer, employment, housing, and anti-poverty organizations. The letter responds to the CDIA’s February 2 announcement, “

Coalition Calls on SBA and Congress to Treat Microbusinesses Fairly in Forgiveness Process

Washington, D.C. – The Center for Responsible Lending (CRL) and a coalition of 51 small business advocates submitted a letter to Congress today calling for fair treatment for microbusinesses seeking forgiveness of Paycheck Protection Program (PPP) loans. The letter states that more than 400,000 microbusinesses that received PPP loans of $25,000 or less in 2020 are being required to repay all or a portion of this emergency relief. The letter applauds Congress and the Small Business Administration’s (SBA) swift action in implementing PPP loans to address urgent needs as the pandemic and ensuing

Poll Finds Broad, Bipartisan Support for Lowering Payday Loan Interest Rates From 260% to 36% in Rhode Island

RI Senators Introduced Effective 36% Rate Cap Bill Last Week PROVIDENCE, R.I.— After State Senator Ana Quezada and cosponsors introduced S2166 last week, a bill that would cap payday loans at 36% annually by repealing authorization for their triple-digit annual interest rates, the Center for Responsible Lending, The Economic Progress Institute and Capital Good Fund released a poll showing broad support for such a measure. Rhode Islanders are eager to limit the interest rate payday lenders can charge on loans that typically trap borrowers in long-term cycles of debt, according to the poll

Predatory Loans for Puppies Must be Stopped, Say Consumer and Animal Welfare Advocates

TAB Bank is helping EasyPay Finance evade state laws that prohibit 189% APR loans WASHINGTON – In advance of National Love Your Pet Day on February 20, the Center for Responsible Lending, along with its Stop the Debt Trap coalition partners, is teaming up with animal welfare advocates to launch a campaign to stop TAB Bank from making predatory puppy loans, many of which go to buy puppies from puppy mills. At pet stores across the country, Transportation Alliance Bank (TAB Bank) is helping predatory lender EasyPay Finance evade state interest rate laws and make pet loans at 130% to 189% APR

The System is Broken: 100+ Organizations Urge Biden Administration to Aid Millions of Student Loan Borrowers with Overdue Income-Driven Repayment (IDR) Reforms

IDR program has failed borrowers for decades, organizations contend, calling on the Education Secretary to fulfill broken promises WASHINGTON, D.C. — Today, a group of 104 diverse advocacy organizations, including American Federation of Teachers (AFT), National Education Association (NEA), and UnidosUS, sent a letter to the Biden administration, calling on U.S. Secretary of Education Miguel Cardona to reform broken, dysfunctional income-driven repayment (IDR) programs with the creation of an IDR restoration project or waiver. While student loan cancellation under IDR has been possible since

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