Research & Policy

An overview of the Dodd-Frank financial reform law, focusing on the Consumer Financial Protection Bureau and mortgage lending provisions. Prepared by Chris Kukla, CRL's Senior Counsel for Government Affairs.

Read the full comment to the Federal Reserve CRL Comments On "Report to the Congress on Reductions of Consumer Credit Limits Based on Certain Information as to Experience or Transactions of the Consumer"[1] The Federal Reserve recently issued a report based on a survey of credit card issuers that asked whether they had taken adverse action on consumers' accounts based...

In August 2010, Wells Fargo was ordered to reimburse its California customers $203 million in debit card overdraft fees triggered solely by transaction reordering between November 2004 and June 2008.

As the August 15th deadline nears for existing bank customers to opt in to high-cost overdraft programs, a new CRL analysis finds bankers use aggressive, often misleading marketing to target the most vulnerable customers.

A CRL analysis finds that payday lenders charge up to 572 percent APR for two-week loans at over 900 payday lending outlets in Mississippi. The typical borrower in that state pays an estimated $691 fees for a $350 payday loan repeatedly renewed, and still owes the principal. Overall, payday lending drains $270 million from Mississippi families every year. An exemption...

Full Session Law This legislation, effective October 1, 2010, provides basic protections for North Carolinians against foreclosure "rescue" scams, and abuses related to option-to-purchase and contract-for-deed contracts. Violations of this law constitute an unfair trade practice and the injured party may sue to recover damages, obtain declaratory or equitable relief, or rescind the transaction, in addition to any other remedy...

In recent years, a growing number of states have enacted interest rate caps and other protections to eliminate abusive payday lending practices that trap consumers in long term debt. Payday lenders repeatedly evade these rules, finding new ways to maintain business as usual and continue to offer short-term loans with triple-digit interest rates. The latest form of subterfuge is one...

CRL and consumer coalition express concerns about credit card issuer potential violations of the the Credit CARD Act of 2009. Problems related to penalty rate disclosures, variable rates, payment allocation and pick-a-rate are cited.

SUMMARY We commend NCUA for its efforts to encourage federal credit unions (FCUs) to offer responsible small loan products. However, we encourage NCUA to think of this program in the context of two realities: 1) short-term loan products, whether they are called "payday loans" or are offered through a credit union, are likely to trap already vulnerable customers in costly...

The Comments of Michael Calhoun, President, of the Center for Responsible Lending to the Federal Trade Commission regarding the Notice of Proposed Rule-Making: Telemarketing Sales Rule Debt Relief Amendments Matter No. R4110011.

Debt settlement is a rapidly growing industry in which companies advertise that they can eliminate consumer debt by negotiating reduced debt payoffs with a consumer's creditors, usually for unsecured debt such as credit card debt and medical bills. What's the Problem? Flawed model: The debt settlement model is an inherently flawed one, in that it requires consumers who are deep...

CRL's, Consumer Federation of America and the National Consumer Law Center's comment letter to the OTS regarding the agency's Supplemental Guidance on Overdraft Protection Programs.

Read our report >> Our new research shows that the foreclosure crisis is not over, and runaway foreclosures continue to drain hundreds of billions of dollars in wealth from families, hitting communities of color the hardest. An estimated 2.5 million foreclosures were completed from 2007 – 2009, and an estimated 5.7 additional ones are imminent. An estimated 17% of Latino...

CRL and other consumer groups provide comment on the Office of Personnel Management's proposed rule regarding garnishment of federal benefits.

Louise Golden's backyard is a showplace. She planted everything with her own hands: crepe myrtle, pink peonies, azaleas, and roses of four colors. She and her husband, Stanley, bought the split-level house on Kepner Court in Lanham, Maryland, in 1980. She loved the place from the start, because of its roomy kitchen, and because of the possibilities she saw in...

The auto dealer lobby successfully fought to receive a special exemption in the House from the rules of the Consumer Financial Protection Bureau (CFPB) in the financial reform bill even when the dealers act as creditors and brokers on car loans. But fair, honest and ethical competition requires a level playing field, as well as a fair and consistent system...

Reconciling H.R 4173 and S. 3217 During recent years, regulators stood by and allowed the most costly reckless lending in history, largely because they were heavily influenced by the very businesses they were supposed to oversee. Lax regulation has already cost trillions of dollars. For the final financial reform bill, these four issues will be vital in protecting taxpayers from...

Today's financial troubles were triggered by a massive failure of home loans—a foreclosure epidemic that will continue to cost all homeowners billions of dollars each year. To avoid repeating this crisis, the final financial reform legislation must include three major elements: Better lending standards: Both the House and Senate bills (H.R. 4173 and S. 3217, respectively) include crucial minimum mortgage...

An Examination of Credit Card Late Fees Read the entire "A Just Fee or Just a Fee?" 13 page research report. Brief background on the report plus report findings: The CARD Act of 2009 brought strong credit card reform to the industry and benefits to cardholders, but the penalty late fee issue remains to be addressed. Congress assigned the Federal...

The Consumer Financial Protection Agency should be headed by a strong, independent-minded director, rather than a five-member commission, to ensure that the Consumer Financial Protection Agency is free from industry influence and costly delays.

The Snowe-Pryor Senate financial reform bill proposal would create a layer of bureaucracy that is redundant and dangerous. This language would prioritize small businesses over families, taxpayers and other key stakeholders.

To ensure that the CFPA is independent of the industry it is trying to regulate, Congress must ensure that the funding source remains independent of political pressure.

To ensure that the CFPA is independent of the industry it is trying to regulate, Congress must ensure that the funding source remains independent of political pressure.

Summary of SB 1275 (As Amended 5-18-10) Section 2923.4: New Notice for Delinquent Borrowers on Foreclosure Process, Rights and Obligations Requires a state agency to create and translate a notice for delinquent borrowers that describes a borrower's rights and obligations, and outlines what to expect in the foreclosure process. (Specific text included in bill). Section 2923.5: Pre-NOD Determination for Loan...

Three servicers. Three California homeowners. Three avoidable foreclosures. Three Ways SB 1275 Would Help Stop the Foreclosures that can be Stopped Patricia and Manuel Mondoy, Hayward, Calif. Under SB 1275, GMAC would have been required to complete its evaluation of Patricia and Manuel M.'s loan modification before recording a Notice of Default. If GMAC had completed the evaluation process before...