Press Releases

DURHAM, NC -- Payday lenders who trap people in triple digit-interest loans locate their stores in African-American neighborhoods in higher concentrations, according to a report by the Center for Responsible Lending (CRL). African-American neighborhoods in North Carolina have three times as many payday lenders per capita as white neighborhoods, even after controlling for variables associated with the industry's purported customer...

WASHINGTON, D.C. -- A new bill in Congress would demolish many of the protections states and the federal government have carefully erected against predatory lenders and would expose millions of homebuyers to the loss of their savings and even their homes. The bill by Congressmen Robert Ney of Ohio and Paul Kanjorski of Pennsylvania would preempt state laws proven effective...

WASHINGTON, D.C. -- A bill by Rep. Brad Miller, Rep. Mel Watt and Rep. Barney Frank, the ranking Democrat on the House Finance Committee, would protect homeowners from predatory lenders far better than current federal law, says the Center for Responsible Lending. The bill is modeled on a North Carolina law that has reduced predatory loans and would eliminate current...

View this document (PDF) Ernst & Young LLP recently released a report discussing the outcomes of binding mandatory arbitration ("BMA") in credit-related, consumer-initiated arbitration cases.1 As an increasingly standard contract provision, consumers often unknowingly or feel compelled to accept pre-dispute BMA clauses in their contracts. These clauses strip consumers of their right to dispute claims in a court with a...

WASHINGTON, D.C. -- Borrowers who need protection from triple-digit interest rates when they overdraw their bank accounts won't get it from federal regulators, who are asking financial institutions to police themselves. Now it is up to the Federal Reserve Board to provide at least one important protection to borrowers by requiring banks and other financial institutions to disclose the annual...

Download the Reports Borrowers in Higher Minority Areas More Likely to Receive Prepayment Penalties on Subprime Loans (PDF 364kb) Prepayment Penalties Convey No Interest Rate Benefits on Subprime Mortgages (PDF 351kb) DURHAM, N.C. -- People with subprime home loans who live in minority neighborhoods face 35 percent greater odds of being saddled with prepayment penalties than borrowers living in predominantly...

A broad coalition of civil rights and consumer groups calls on Citigroup to end the abusive practice of requiring borrowers to submit to mandatory arbitration to resolve complaints on home loans in order to make the "best practices" announced by Citigroup today a reality. The groups calling on Citigroup to eliminate mandatory arbitration in subprime mortgage loans include: AARPLeadership Conference...

Some subprime loans are predatory, and an effective law that eliminates predatory loans will reduce the number of subprime originations accordingly. Showing a different growth rate than two other states without examining loan terms, as the MBA study itself acknowledges, fails to answer the real question of whether the NC law helps homeowners protect their homes from abusive lending while...

DURHAM, NC -- New research by the Center for Responsible Lending (CRL) finds that predatory mortgage lending is a significant problem in rural America that hinders borrowers from taking advantage of improving credit or interest rate declines. Perceived as an urban problem by many, certain abusive lending practices are more prevalent in rural areas than in cities. Rural borrowers are...

The Center for Responsible Lending today commended North Carolina Commissioner of Banks Joseph A. Smith, Jr. and Attorney General Roy Cooper for launching investigations into whether payday lender Advance America is violating the state's usury laws. The Commissioner of Banks today issued a subpoena for Advance America President William M. Webster, IV or appropriate employees of the company to appear...