Broad Coalition Urges CFPB to Examine Fintech Credit Products and Fee Models

79 Groups Ask CFPB to Provide Much Needed Oversight for Emerging Credit Products WASHINGTON, D.C. — The Center for Responsible Lending, Consumer Federation of America, National Consumer Law Center, Student Borrower Protection Center, and 75 additional organizations called for Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra to carefully examine fintech credit products and fee models that are evading consumer protection laws and creating debt traps for consumers. Read their letter. The groups applauded the CFPB for its recent inquiry into five large buy now, pay later providers

CRL Applauds Extension of the Federal Student Loan Payment Pause

WASHINGTON, D.C. – The Biden Administration announced today that it will extend the federal student loan payment pause until May 1st, 2022. In response, Jaylon Herbin, outreach associate at the Center for Responsible Lending (CRL) , made the following statement: We commend the President for safeguarding student loan borrowers at a time of profound economic uncertainty. The extension of the payment pause is a critical step toward restoring economic stability for borrowers and their families. We urge the Biden Administration to continue extending the payment pause until the pandemic and the

CRL Commends Consumer Financial Protection Bureau for Starting Inquiry into “Buy Now, Pay Later” Credit

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it is opening an inquiry into large “Buy Now, Pay Later” (BNPL) lenders. “Use of ‘Buy Now, Pay Later’ credit has exploded, so it is important that we understand the impacts of this debt. In opening this inquiry, the Consumer Bureau is taking a great first step in learning about this industry and toward preventing harm to consumers,” said Center for Responsible Lending (CRL) Director of California Policy Marisabel Torres . Watch and read Ms. Torres’s recent testimony before Congress on BNPL and other fintech

CRL Statement on Nomination of Sandra Thompson to Full Term as FHFA Director

WASHINGTON, DC – Today President Biden nominated Sandra Thompson to a full five-year term as Director of the Federal Housing Finance Agency (FHFA) – the federal regulator that oversees Fannie Mae and Freddie Mac. Mike Calhoun, president of the Center for Responsible Lending, issued the following statement: “Sandra Thompson has provided strong leadership at FHFA as Acting Director, ensuring that Fannie Mae, Freddie Mac and the Federal Home Loan Banks meet their mandates to safely support lenders in providing sustainable financing for families to buy homes and start and build businesses,” said

CRL Statement on FDIC Board Members’ Push to Review Bank Merger Guidelines

“Lack of competition in the banking sector can drive up prices for consumers and stifle economic growth and innovation,” said Mike Calhoun, president of the Center for Responsible Lending. “We need more robust scrutiny of the disproportionately negative impact bank mergers can have on communities of color, rural and low-income Americans. The FDIC should be taking affirmative steps to promote competition and financial fairness for consumers and businesses.” ### Press Contact: Alfred King

CRL Praises Capital One for Eliminating Overdraft Fees

WASHINGTON, D.C. – This morning, Capital One, America’s sixth-largest retail bank, announced a complete end to all overdraft fees and non-sufficient fund (NSF) fees (aka bounced check fees) for its consumer banking customers. It is the only bank among the ten largest to take this step. Center for Responsible Lending (CRL) President Mike Calhoun issued the following statement: The people who are most frequently charged overdraft are the people who can least afford it. This financial burden falls disproportionately on low-income and Black and Latino Americans. The high cost of repeat overdraft

CRL Calls for Congress to Pass Build Back Better Act with Historic Housing Investments

WASHINGTON, D.C. – Today, the Center for Responsible Lending called for Congress to pass the Build Back Better Act. The bill aims to combat climate change and strengthen our nation’s human infrastructure, including through an historic investment in housing. Center for Responsible Lending President Mike Calhoun issued the following statement: The Build Back Better Act would make much-needed investments in the affordability, supply, and maintenance of housing for American families. This legislation would constitute a major step toward ensuring everyone has a decent and affordable place to call

CRL Backs Bipartisan Bill to Limit Interest Rates on Consumer Loans

WASHINGTON, D.C. – The Center for Responsible Lending (CRL) today announced its support for bipartisan legislation that would limit the interest rate on consumer loans to no more than 36% Annual Percentage Rate (APR). U.S. Congressmen Jesús “Chuy” García (D-Ill.) and Glenn Grothman (R-Wis.) earlier this week introduced the Veterans and Consumers Fair Credit Act. The bill, H.R. 5974, would extend existing interest rate limit protections currently in place for active-duty military servicemembers and certain dependents to veterans and all other Americans. Identical legislation, S. 2508, has

Majority of Black College Students Support Loan Cancellation, as Underfunding of HBCUs Compounds Financial Challenges

New research and documentary film illuminate heavy debt burdens and financial struggles of Black graduates of HBCUs WASHINGTON, DC (Nov. 9, 2021) — More than 87% of Black students who attend historically Black colleges and universities (HBCUs) strongly support debt cancellation. In addition, more than 90% of Black borrowers support other policy solutions to address the institutional funding disparities and lack of family wealth that leave Black HBCU graduates with significantly higher student loan debt burdens than their White peers, according to a national study and focus groups conducted by

In Congressional Testimony, CRL Calls for Buy Now Pay Later and other Fintech Products to be Monitored and Regulated

WASHINGTON, D.C. – Center for Responsible Lending (CRL) Director of California Policy Marisabel Torres is currently testifying before the House Financial Services Committee’s Task Force on Financial Technology for a hearing titled “Buy Now, Pay More Later? Investigating Risks and Benefits of BNPL and Other Emerging Fintech Cash Flow Products.” Watch the hearing and to read text of both her oral and written testimonies. In her written testimony, Ms. Torres states: We are particularly concerned that without vigilant monitoring and appropriate regulation, products that promise to promote