Senate Fails to Override Presidential Veto, Dodd-Frank Provision Promoting Transparency in Small Business Lending Will Become Law

WASHINGTON, D.C. – The U.S. Senate today failed to override the presidential veto of S.J.Res. 32, a Republican-led Congressional Review Act (CRA) resolution to repeal the Consumer Financial Protection Bureau’s (CFPB) implementation of Section 1071 of the Dodd-Frank Act. Sec. 1071 is a sunshine provision requiring large lenders to collect and report demographic data on small business loans. While Section 1071 was part of the Dodd-Frank Act passed more than a decade ago, the rule for this provision was only finalized last year. The CFPB’s final 1071 rule, which mirrors existing requirements for

New Senate Bill to Curb High-Cost Loans, Junk Fees by Capping Interest Rates

Bill to establish interest rate cap with wide bipartisan popularity among voters WASHINGTON, D.C. – Advocates at the Center for Responsible Lending, National Consumer Law Center, Consumer Federation of America, and Americans for Financial Reform applaud U.S. Senator Jack Reed (D-RI) and more than a dozen Senate cosponsors for introducing the Predatory Lending Elimination Act, which extends to veterans and all consumers the 36% annual percentage rate cap found in the Military Lending Act and prevents the use of junk fees to hide high-cost loans. “We commend Senator Reed for introducing

Consumer and Financial Industry Groups Support New Bipartisan Senate Bill: Close the Shadow Banking Loophole Act

WASHINGTON, D.C. – Today, U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, along with Senator John Kennedy (R-LA) and additional bipartisan cosponsors, reintroduced the Close the Shadow Banking Loophole Act , a bill to require that industrial loan companies (ILCs) abide by the same rules, supervision, and consumer protections as traditional banks. “We commend Chairman Brown and Senator Kennedy’s bipartisan effort to close the loophole allowing Industrial Loan Companies to evade oversight.  This bill advances the basic principle that

Consumer Advocates Applaud FTC for Moving Forward with Cars Rule

WASHINGTON – Today, the Federal Trade Commission (FTC) announced its final rule targeting deceptive conduct in the sale and financing of motor vehicles, titled the “Combatting Auto Retail Scams” (CARS) Rule. After a decade of attempts to fix a broken auto marketplace, the FTC announced in July 2022 that it was pursuing an auto dealer rule aimed at ending bait and switch pricing tactics and junk fees in the form of worthless add-on products and services. After receiving over 25,000 comments from the public and widespread support for addressing auto dealer misconduct, the FTC has published its

Consumer Groups Call on the 7th Circuit to Uphold Fair Lending Law

CHICAGO – Tomorrow morning, the Seventh Circuit Court of Appeals will hear oral arguments in the appeal of a fair lending enforcement action brought by the Consumer Financial Protection Bureau (CFPB) against Chicago mortgage lender Townstone Financial. The appealed decision upends 50 years of fair lending law, concluding that lenders are free to discourage minority consumers from seeking credit without violating the Equal Credit Opportunity Act. This errant decision is not only wrong - it endangers equitable access to participation in our economy and legalizes discrimination. Ahead of oral

House Passes Bill to Prevent Transparency in Small Business Lending

WASHINGTON, D.C. – The U.S. House today passed a resolution, S.J.Res. 32, under the Congressional Review Act (CRA) to repeal the Consumer Financial Protection Bureau’s (CFPB) Section 1071 rule of the Dodd-Frank Act, which requires financial institutions to collect and report data on credit applications to the Bureau and the public. President Biden has indicated that he would veto the CRA bill if sent to him for signature. S.J.Res. 32 passed the U.S. Senate in October. Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending (CRL) made the following

California Should Not Delay Protections for Fintech Cash Advances

Earned Wage Advances Should Comply with State Interest Rate Limits Now, Not in Four Years SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) should restore cost limits for earned wage advances and other fintech cash advances under proposed regulations rather than allow a temporary registration regime with no cost limits for up to four years, the Center for Responsible Lending, Consumer Federation of California, National Consumer Law Center, and Office of Kat Taylor said in comments filed late yesterday. “The DFPI has seen through industry myths and recognizes

VA Foreclosure Pause Will Prevent Thousands of Veteran Foreclosures

WASHINGTON – Late Friday, the U.S. Department of Veterans Affairs called on mortgage servicers to pause foreclosures until May 31, 2024. This pause will give VA borrowers a much-needed opportunity to access the upcoming VA Servicing Purchase (VASP) program. Through VASP, the agency will modify and purchase qualifying loans in default to provide meaningful payment assistance to VA borrowers in financial distress. Consumer advocates at the National Consumer Law Center (NCLC) and the Center for Responsible Lending (CRL), along with U.S. Senators Jon Tester (Mont.), Sherrod Brown (Ohio), Jack Reed

CRL Applauds CFPB for Holding Citibank Accountable for Lending Discrimination

WASHINGTON - The Consumer Financial Protection Bureau (CFPB) this week assessed more than $25 million in redress and penalties against Citibank, N.A., the third-largest bank in the U.S., for illegal discrimination. The CFPB found that Citi, with assets of more than $1.7 trillion as of June 2023, purposefully discriminated against credit card applicants of Armenian descent, primarily based on the spelling of their last name, and fabricated documents to cover up its discrimination. Mike Calhoun, president of the Center for Responsible Lending, issued the following statement: CFPB plays a

At Congressional Hearing, CRL Testifies That Fintech Lending Bills Under Consideration Would Harm Consumers

Newly published reports on earned wage advances and buy now pay later support the warnings WASHINGTON, D.C. – Congress should do more to protect consumers from abuse by so-called “fintech” lenders and, at minimum, should not enable that abuse through legislation, the Center for Responsible Lending (CRL) said yesterday in testimony at a Congressional subcommittee hearing. That message was reinforced by letters from a coalition of advocates warning that bills, considered as part of the hearing, would further expose consumers to harm. The fintech-focused hearing was entitled “Modernizing