Colorado Governor Signs Leading-Edge Law Preventing Evasion of State Usury Caps

OAKLAND, CA – Governor Jared Polis signed into law yesterday a measure to prevent online and out-of-state lenders from making high-cost loans in violation of Colorado law. The measure could be taken up in other states as a powerful tool for addressing the growing problem of lenders end-running state consumer protections through evasive schemes and legal maneuvering. Ellen Harnick, executive vice president and director of state policy for the Center for Responsible Lending (CRL), made the following statement: “Governor Polis has signed a law that is a solid solution to a huge and growing

Senate Vote to Repeal Student Debt Relief and Impose Retroactive Loan Payments Threatens Financial Stability for Millions of Borrowers

Washington, D.C.– The Senate voted today in favor of a resolution under the Congressional Review Act (CRA) that seeks to dismantle President Biden's historic student debt relief plan and force millions of borrowers into retroactive repayment of their student loans, including waived interest. The bill also nullifies the Biden administration’s latest income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) reforms, and reverses student loan forgiveness already approved for tens of thousands of borrowers under PSLF, immediately creating a financial burden for military service

Minnesota Governor Signs Popular Interest Rate Cap on Payday Loans

DURHAM, NC – Governor Tim Walz signed into law last week a measure capping annual interest rates on payday loans at 36% in Minnesota, with strict limitations on loans bearing annual rates from 37% to 50%. Payday loans above 50% will be outlawed. The measure is expected to stop predatory payday lending as Minnesotans know it, eliminating loans that carry average annual percentage rates of interest (APRs) of 220% that can create a cycle of long-term debt. Passage of the law, which takes effect January 1, 2024, continues a growing movement among the states to protect consumers from unscrupulous

Congress Should Oppose Codification of Student Debt Payment Pause in Debt Ceiling Deal

Washington, D.C.– The Center for Responsible Lending (CRL) noted that a debt ceiling bill which resumes student debt payments – on a shorter timeline than previously announced – creates a repayment burden that reduces the economic security of working Americans still struggling to recover from the negative effects of the pandemic and rising inflation. View CRL’s letter to Congress. “Restarting student loan payments on the accelerated timeline included in the debt ceiling bill will add thousands of dollars to the average borrower’s loan balance and force many into loan delinquency,” said Jaylon

House GOP to Use Congressional Review Act to Block Student Debt Relief, Force Borrowers into Retroactive Payments

Washington, D.C.– The House is expected to vote today on a resolution under the Congressional Review Act (CRA) to repeal President Biden's student debt relief plan, end the current loan payment suspension and require retroactive student loan payments from borrowers, including waived interest. In addition, using the CRA – a tool that allows Congress to reverse final rules issued by federal agencies – would nullify the Biden administration’s latest income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) reforms, and reverse student loan forgiveness already approved for tens of

Small Lenders’ Brief Warns Financial Market Chaos Would Result if Supreme Court Rules to Suspend CFPB Operations

Such an unprecedented ruling would harm financial institutions, especially smaller entities, and consumers as well as imperil the Federal Reserve and Medicare WASHINGTON, D.C. – The Supreme Court would roil financial markets if it adopted an unprecedented lower court ruling warn several small financial institutions in an amicus brief for Consumer Financial Protection Bureau (CFPB) v. Community Financial Services Association (CFSA). The lawsuit was originally filed by a trade group for payday lenders (CFSA) that challenged a CFPB rule, including by illogically arguing that the Bureau is

California DFPI Should Prevent Fintech Predatory Lending, Expand Protections in Earned Wage Advance Proposal

Proposed rule would require lenders to comply with California law, but triple-digit interest rates could remain OAKLAND, CA – Consumer advocates praised the California Department of Financial Protection and Innovation (DFPI) for requiring fintech cash advances to comply with the laws that govern other forms of credit and for cracking down on “tips” used to disguise interest. The groups voiced appreciation for the solid start and urged the DFPI to go further to protect consumers from potential financial harm caused by earned wage advance (EWA) and other fintech payday loans that can extract

Stronger Regulatory Oversight Evident in End of TD Bank Merger Bid

CRL urges bank to address concerns raised in merger review WASHINGTON, D.C. – Today, TD Bank and First Horizon Bank announced the termination of their merger agreement, citing uncertainty about the timetable to obtain regulatory approvals. The Center for Responsible Lending (CRL) along with civil rights and consumer group partners had urged the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to withhold approval given systemic risks, harms of increased consolidation, and TD’s poor treatment of customers. A separate letter urged the OCC to not sign off on merger plans

Leading Civil Rights and Housing Groups Support FHFA’s Critical Updates to the Mortgage Pricing Framework

Pricing Framework is an Important Initial Step in the Right Direction to Advance Fair and Affordable Housing and Strengthen Communities WASHINGTON, D.C. – Leading civil rights and housing policy organizations issued the following statement supporting the Federal Housing Finance Agency (FHFA)’s pricing framework: We commend Director Thompson and FHFA for recent updates to the mortgage pricing framework that represent a critical first step in the journey to create a more equitable system for creditworthy borrowers. The updates help address persistent gaps in wealth and homeownership while also

Broad Coalition Urges House Panel to Reject Bill that Defangs Consumer Watchdog

WASHINGTON, D.C. – Starting today at 10 AM ET, the U.S. House Committee on Financial Services will hold a markup and vote on several pieces of legislation, including a wide-ranging bill that would undermine the Consumer Financial Protection Bureau (CFPB) and support predatory lenders. A diverse coalition of over 70 organizations wrote a letter to Members of the Committee, urging them to vote against this anti-consumer bill. “We need the CFPB to continue as an effective consumer watchdog with independent funding, so that financial industry lobbyists cannot use their influence over the annual