Press Releases

We are pleased the Consumer Financial Protection Bureau (CFPB) has begun an extensive analysis of bank and credit union overdraft programs. Overdraft fees—many of them encouraged and generated through unfair and deceptive practices—cost consumers billions of dollars each year. Overdrafts are a particular problem when consumers use a debit card to make purchases or withdraw cash from ATMs. The CFPB...

The final rules issued today by the Consumer Financial Protection Bureau strike the right balance: they safeguard consumers from abusive practices while helping lenders comply with new mortgage lending standards. The rules address two key issues related to the Dodd-Frank Act's mandate that lenders assess a borrower's ability to repay, particularly the standards a loan must meet to qualify as...

Data released earlier today by HUD shows that the National Mortgage Settlement has brought more than $50 billion in principal reduction and savings to over 620,000 homeowners. Principal reductions and refinancing savings represent 60 percent of the total dollar amount. These savings show this negotiated agreement between the largest banks and state Attorneys General and the Administration is a strong...

As the nation struggles to rebuild the housing market and broader economy, the White House's nomination of Rep. Mel Watt to head the Federal Housing Finance Agency (FHFA) is encouraging. Rep. Watt has been in Congress for twenty years, ably serving on the House Financial Services Committee. He was one of the first elected officials to warn about the dangers...

Joint Statement by the following: Orson Aguilar, Executive Director, The Greenlining Institute Laura Berry – Executive Director, Interfaith Center on Corporate Responsibility Becky Bond – Political Director, CREDO Michael Calhoun – President, Center for Responsible Lending Lisa Donner - Executive Director, Americans For Financial Reform Tom Feltner - Director of Financial Services, Consumer Federation of America George Goehl - Executive...

On April 17 the California Senate Banking and Financial Institutions voted 5 to 3 to defeat SB 515, a payday lending reform bill. "This is a stinging defeat for those who want our communities served by safe and responsible financial products. Despite offering compromise and the industry's own favored proposal of a larger loan amount, the Senate Banking Committee members...

What: The California State Senate Banking Committee will hear Senate Bill 515 on April 17th. The bill takes a dramatically different approach from previous efforts to reform payday lending by targeting the highly toxic aspects of these loans that cause the most damage to consumers – the debt trap. Borrowers take out consecutive 2-week loans—often multiple times—because they do not...

Two consumer advocacy groups today outlined how state lawmakers can bolster safeguards to prevent unnecessary foreclosures. The recommendations by the Center for Responsible Lending and Consumers Union would close gaps left by new federal mortgage servicing rules and by last year's settlement among 49 state attorneys general, federal officials and the five biggest mortgage servicers. To read the policy paper...

Dealers should not be allowed to impose higher interest rates than necessary on consumers Yesterday the Consumer Financial Protection Bureau announced it would hold banks and other lenders liable for any auto loans in their portfolio that are discriminatory. We were encouraged by today's announcement and hope it is the first step toward eliminating unfair interest-rate markups by auto dealers...

Seniors Face Particular Risks Banks making payday loans continue to trap customers in a cycle of debt, a new study by the Center for Responsible Lending shows. Read the report, "Triple Digit Danger: Bank Payday Lending Persists," at http://responsiblelending.org/research-publication/triple-digit-danger. Banks pitch payday loans as short-term borrowing that allows customers to deal with a financial emergency, repay the loan, and move...