Press Releases

American families won a major consumer victory today when the Federal Trade Commission issued a new rule barring debt relief firms from collecting up-front fees from customers before any service is provided. We commend the FTC commissioners for exercising their authority to lay down common-sense rules in the debt settlement arena, where unfair and deceptive practices are rampant. The new...

President Obama's signing of the financial reform bill today marks a watershed in efforts to restore common sense to lending and financial markets. Our nation now has a roadmap for ending the unfair and deceptive practices that have cost millions of families their financial security and nearly capsized the economy. To members of Congress who worked so diligently to craft...

The current economic meltdown has been a nightmare for American families, and a recurrence would be a disaster for our nation. The Senate's vote today puts in place key reforms that help create a brighter future, one in which our financial system flourishes: People will get loans they can afford to repay, and principles of fairness and value in financial...

Washington, D.C.— Starting tomorrow, banks must obtain permission from new customers before enrolling them in costly overdraft coverage for debit-card transactions. The Federal Reserve Board's new rule improves the status quo but still falls far short of what's needed: Banks should not be allowed to impose exorbitant charges that bear no reasonable connection to the overdraft amount or a lender's...

Statement from Michael D. Calhoun President, Center for Responsible Lending Washington, D.C.—"Today, House and Senate conferees reached a historic agreement to create a consumer protection agency that is truly independent from the lenders it will oversee: It will have a single director nominated by the president and confirmed by the Senate; funding that is largely insulated from meddling by industry...

The ongoing foreclosure crisis has slashed hundreds of billions of dollars in wealth from communities of color, a new CRL research report shows, as an estimated 17% of Latino homeowners and 11% of African-American homeowners have already lost their home to foreclosure or are now at imminent risk. The wealth drain is the result of direct losses from foreclosures and...

Statement of Center For Responsible Lending President Michael D.Calhoun regarding Federal Reserve Board Rules on Credit Card Penalty Fees The Federal Reserve Board today issued rules that significantly limit the penalty fees that credit card companies can charge, but didn't go far enough to curtail widespread abuse in this area. Our recent report shows that card issuers are charging late...

Contrary to what they say, credit card companies don't price late fees for risk, a new report by the Center for Responsible Lending shows. Instead, the study finds issuers that engage in predatory pricing in general are more likely to charge the highest late fees, ones that bear little relationship to the issuers' potential loss. "The largest credit card issuers...

Legislation that would help prevent avoidable foreclosures and deter irresponsible lender and servicer behavior passed out of the California Senate today, 21-12. "Simple fairness dictates that no one should lose their home while they are in the middle of trying to save it," said Paul Leonard, director of the California office of the Center for Responsible Lending. SB 1275, authored...

Thousands of troubled California homeowners, like Kathryn Winogura of Lafayette and Zachary Norris of Oakland should have their fingers crossed for foreclosure legislation being considered in Sacramento next week. SB 1275, the bill sponsored by Sens. Mark Leno (D-San Francisco) and Darrell Steinberg (D-Sacramento), would level the loan modification playing field and hold servicers accountable for their errors. The bill...