CRL Statement in Advance of Today’s Press Conference with Congresswoman Houlahan on PPP Loan Forgiveness

WASHINGTON, D.C. – Today at 10:45 am ET at the House Triangle , and live-streamed on the Center for Responsible Lending’s Facebook page , Congresswoman Chrissy Houlahan (D-PA) and affected small business owners will call attention to the financial devastation more than 300,000 American small businesses are now facing due to unforgiven PPP loans totaling more than $3.7 billion , and to demand that the U.S. Small Business Administration (SBA) act immediately to rescind the “Good Faith Error” rule , which currently prevents lenders from forgiving the loans. Center for Responsible Lending

Small Business Owners Facing Downsizing, Layoffs Join Members of Congress to Demand SBA Action on PPP Loan Forgiveness

WASHINGTON – Today, small business owners (full statements below) from Illinois, Texas, Maryland, California, Washington, and North Carolina joined with U.S. Representative Chrissy Houlahan (D-PA), American Business Immigration Coalition (ABIC), and the Center for Responsible Lending (CRL) and Small Business Majority (SBM) to Demand the Small Business Administration (SBA) reform the “good faith error” rule, one of more than 60 rules passed by SBA during the pandemic, which prevents lenders from forgiving the loans that are now devastating more than 300,000 American small businesses with more

High-Cost Installment Loans Push Borrowers Deeper in Debt

CRL: 85 percent of survey respondents suffer negative consequences from larger, longer-term loans with triple-digit interest WASHINGTON, DC – High-cost installment loans, taking a rising share of the lending market over the past decade, often compound borrowers’ financial problems, according to new research released today by the Center for Responsible Lending. The report, “ Unsafe Harbor: The Persistent Harms of High-Cost Installment Loans ,” provides a rare look at the significant challenges high-cost personal installment loans create for many borrowers. These challenges include the inability

Consumer Bankers Association and Center for Responsible Lending File Petition to CFPB for Oversight of “Buy Now, Pay Later,” “Fintech,” and Finance Company Personal Loans

WASHINGTON, D.C. – The market for personal loans is massive and growing, yet the fintechs and other non-bank lenders who make such loans are not subject to regular oversight by the Consumer Financial Protection Bureau (CFPB), which has “created an unlevel playing field and a large risk to consumers,” write the Consumer Bankers Association (CBA) and the Center for Responsible Lending (CRL). The groups jointly filed a petition for the CFPB to develop a rule that would define larger participants in the market for personal loans so that sizable non-depository lenders would be subject to consistent

Coalition Urges SBA and Congress to Rescind Rule Limiting PPP Loan Forgiveness for Small Businesses

Washington, D.C. — The Center for Responsible Lending (CRL), American Business Immigrant Coalition (ABIC), and more than 20 consumer, civil rights and advocacy groups and lenders, recently submitted a letter urging the U.S. Treasury Department and U.S. Small Business Administration (SBA) to reverse the Good Faith Error Rule that has prevented more than 300,000 small business owners from obtaining forgiveness of Paycheck Protection Program (PPP) loans. Co-signers of the letter also include the Small Business Majority, Main Street Alliance, Opportunity Finance Network, National CAPACD, NALCAB

New CRL Video Explains Why Predatory Payday Lenders Downplay Loans’ True Interest Rates

400% Interest Payday Loans Lead Borrowers into Long-Term Debt Trap DURHAM, NC – The Center for Responsible Lending (CRL) today released the first episode of its “In Focus” video series, designed to break down complex financial issues and make them easier to understand. In the series, CRL financial experts will help people recognize and prevent financial exploitation, to promote financial fairness for all Americans. In the APR Matters video , CRL senior policy counsel Yasmin Farahi explains why predatory payday lenders downplay the APR (annual percentage rate of interest) for high-cost loans

Federal Student Loan Payment Pause Helps Borrowers Pay for Basic Needs, New Poll Finds

WASHINGTON, D.C. – A new Morning Consult poll commissioned by the Center for Responsible Lending (CRL) found that the federal student loan payment pause has helped struggling borrowers pay for daily living expenses and other debts . Of those surveyed, 37% said the payment pause helped them pay for gas, food and transportation while 31% said it helped them pay for credit card debt, personal loans, among others. The poll also found strong bipartisan support for a wide range of actions to help students with the cost of managing debt. “While President Biden’s recent cancellation plan has given

NC Supreme Court Should Enforce NC Consumer Economic Protection Act, Argues Counsel

Debt Buyers’ Lawsuit Assembly Lines Should Be Dismantled for Lack of Appropriate Documentation of Debt Raleigh, NC – Yesterday, the North Carolina Supreme Court heard oral arguments in the case of Townes v. Portfolio Recovery Associates (PRA), for which the Center for Responsible Lending (CRL) and several other organizations submitted an amicus brief . The brief urges North Carolina courts to enforce existing statutory protections — and interpret laws as they were written — to prevent harm to vulnerable consumers. The NC Attorney General also submitted a brief in support of Townes. The case

CRL Commends President Biden on Historic Student Loan Cancellation Announcement

WASHINGTON, D.C. – The Biden Administration announced today that it will cancel $10,000 of student loan debt for borrowers who earn less than $125,000 as individual tax filers and $20,000 for Pell Grant recipients, providing billions in relief to the nation’s borrowers. The administration will also extend the federal student loan payment pause through December 31, 2022. In response, Jaylon Herbin, outreach associate and policy manager for the Center for Responsible Lending (CRL), made the following statement: We applaud President Biden for being the first sitting president to cancel any amount

Federal Reserve and OCC Should Reject TD Bank’s Proposed Merger with First Horizon Bank, Groups Write in Comment Letter

Proposed mega-bank would be the sixth largest in the U.S. Federal bank regulators haven’t formally rejected a merger application in over 15 years, but Biden Administration has highlighted market concentration WASHINGTON, D.C. – Amid growing concern about corporate consolidation, the Center for Responsible Lending (CRL) and Americans for Financial Reform Education Fund are leading a letter calling for the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to reject a proposed merger between TD Bank and First Horizon Bank. Their comment letter points to several reasons why