Press Releases

The Consumer Financial Protection Bureau (CFPB) today released proposed rules that, if strengthened, could rein in the worst abuses of payday and car-title lending. As written, however, the rule contains exceptions and loopholes that abusive lenders will use to evade the rule's protections and continue to trap vulnerable borrowers in unaffordable 300-plus percent interest loans. In response to the proposed...

Updated estimate finds overdraft fees drain $14 billion from consumers annually, while analysis of complaint narratives finds the deck stacked against consumers. Financial institutions continue to engage in abusive overdraft practices, according to a new analysis by the Center for Responsible Lending (CRL). Each year, consumers pay nearly $14 billion in overdraft fees. If non-sufficient funds are included, the figure...

The Consumer Financial Protection Bureau (CFPB) today released a research report on car-title lending that underscores earlier independent findings by the Center for Responsible Lending (CRL). Car title loans are high-cost, high-interest loans secured by the title of a vehicle the borrower owns outright. After analyzing millions of records, CFPB found that: One in five borrowers have their vehicles repossessed...

Damning Report on Car Title Loans, New Figures on Consumer Fee Drain, Heighten Calls for Strong National Rule Earlier today, the Consumer Financial Protection Bureau (CFPB) announced plans for a field hearing that may serve as the backdrop for unveiling a proposed national rule governing a range of abusive small-dollar lending practices. The announcement was made the same day the...

New research from the Center for Responsible Lending finds that every year, $8 billion in fees is lost to one of two types of small-dollar, predatory lending: payday and car-title loans. Usually sold to consumers with average incomes of approximately $25,000, these loans may have different names; but both charge triple-digit interest rates that generate the bulk of their debt...

High costs, low graduation rates, and complaints trigger CRL analysis As higher education costs continue to rise, new research by the Center for Responsible Lending (CRL) analyzes the debts and outcomes resulting from a wide-ranging choice of institutions – both public and private nonprofits and for-profit colleges located in North Carolina. NC Student Loan Calculus found that choices in higher...

Google, a leading global search engine, today announced that it would no longer accept advertising for payday loans. Terming the development as an ‘update to its financial services policy', the decision will end many of its prominent online ads. Until now, these ads appeared even in states that have banned payday lending's triple-digit interest rates. Google's action also precedes a...

Today the Consumer Financial Protection Bureau (CFPB) announced a proposed rule that will limit the financial industry’s use of forced arbitration, a practice used to block consumers from enforcing their legal rights. In response, Mike Calhoun, President of the Center for Responsible Lending (CRL), issued the following statement: This proposed rule is another key development in bringing transparency and fairness...

A new survey finds that Colorado voters strongly oppose the idea of raising interest rates on consumer loans. Opposition was widespread among voters across lines of race, party affiliation, and household income, but the intensity of opposition was especially strong among voters of color and those who had served in the military. Overall, 51% of voters said they would be...

Today the Consumer Financial Protection Bureau (CFPB) released a new report that proves how high-cost fees on small-dollar loan create rather than resolve financial challenges for borrowers. An 18-month analysis of loans made by more than 330 payday lenders found that half of all borrowers—nearly 10,000—were charged an average of $185 in bank penalties, hidden costs usually in the form...