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Comments on Risks of Bank-Fintech Arrangements Involving Lending

The National Consumer Law Center, the Center for Responsible Lending and the Student Borrower Protection Center submitted to the Office of the Comptroller of the Currency, Federal Reserve System, and Federal Deposit Insurance Corp. on the Request for Information on Bank-Fintech Arrangements Involving Banking Products and Services Distributed to Consumers and Businesses. The comments focus on bank-fintech partnerships in the...

EWA State Toolkit

States in blue have a state-specific factsheet, while states in gray can use the national factsheet which highlights data from users in all 50 states. Access the factsheets at the links below. Arizona Arkansas California Colorado Connecticut Georgia Illinois Maryland Massachusetts Michigan Minnesota New Jersey New York North Carolina Ohio Pennsylvania Virginia Washington

Paying to be Paid: Consumer Protections Needed for Earned Wage Advances and Other Fintech Cash Advances

Among the hottest consumer finance topics in recent years is the proliferation of online lenders offering fintech cash advances, including the subset of those lenders who offer earned wage advances (EWA). These are very short-term loans of small dollar amounts that users can access through a smartphone app. Lenders that offer these products strenuously attempt to avoid being regulated like...

Earned Wage Advance

Earned wage advances (EWA) are small, short-term loans that are typically repaid on the consumers’ next payday. Research by CRL and others has demonstrated using these fintech cash advances leaves many consumers worse off - paying high fees for small loans, increasing their risk of overdraft, and having to reborrow paycheck after paycheck. Regulators should enforce credit laws to increase...

States Should Protect Consumers from Lenders’ Efforts to Increase the Cost of Already Expensive Consumer Installment Loans

Consumer installment loans offered by nonbank lenders can be an expensive form of credit that keeps borrowers in costly long-term debt. Lenders offer these loans to individuals for their personal or household use. Consumers borrow between $1,000 to $25,000 or more. Many states regulate the costs and other terms of these loans, usually requiring them to be repaid monthly over...

Brief of Amici Curiae CRL and National Consumer Law Center in Support of Defendants Appellants and for Reversal NAIB v. Weiser

The Center for Responsible Lending (CRL) and the National Consumer Law Center (NCLC) submitted an amicus brief urging the U.S. Court of Appeals for the 10th Circuit to correct the lower court’s misinterpretation of a Colorado law, and the federal law on which it is based, in order to prohibit out-of-state banks from helping lenders charge Colorado borrowers interest rates...

Support for the Forced Arbitration Injustice Repeal Act (the FAIR Act), S.1376 and H.R. 2953

Public interest organizations, appalled by the Walt Disney Company invoking its restrictive terms of use to evade accountability for the death of a consumer on its premises, wrote to Congress in support of an immediate mark up to the Forced Arbitration Injustice Repeal Act (the FAIR Act), S.1376 and H.R. 2953 so that this legislation may be brought to a...

Voters Strongly Support the Consumer Bureau’s Mission Across Political Spectrum

A new poll from the bipartisan polling team Lake Research Partners and Chesapeake Beach Consulting provides fresh evidence that voters across the political spectrum solidly support a strong Consumer Financial Protection Bureau (CFPB) and tough oversight of Wall Street. This support reaches across blue and red states, and is, in some cases, higher in the battleground states of this year's...

The Rent-A-Bank Scheme

The Problem High-cost lenders are ignoring state law and continuing to lend high above the state's legal interest rates, using a practice called Rent-A-Bank. In some cases, these rates are under 36% on very large loans. In others, rates are in the triple-digits, charging consumers up to 200% to finance car repairs, furniture, and even puppies. How Rent-A-Bank Works In...

Comment: Paycheck Advance Loans Are Credit Products and Should Be Subject to Federal Disclosure Requirements

The Center for Responsible Lending, the National Consumer Law Center, and Consumer Federation of America commend the CFPB for affirming that paycheck advance loans, regardless of their characterization by lenders, are credit products subject to federal disclosure requirements. As written, the proposed interpretive rule by the Consumer Financial Protection Bureau regarding the applicability of the Truth in Lending Act (TILA)...

165 Consumer Advocacy, Faith Based, Racial Justice, Community Advocacy Groups, Workers’ Rights, and Academics Support the CFPB’s Paycheck Advance Interpretive Rules

The consumer, labor, civil rights, legal services and community organizations wrote with strong support of the Consumer Financial Protection Bureau’s proposed interpretive rule on emerging paycheck advance products, sometimes marketed as “earned wage” products.

Comment on Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information

CRL and Americans for Financial Reform Education Fund (AFREF) support the proposed rule which amends the Fair Credit Reporting Act Regulation V to prohibit creditors and consumer reporting agencies from using medical debt information for credit eligibility determinations or providing medical debt information that a creditor is prohibited from using. The Fair Credit Reporting Act was enacted, in part, to...

90 Consumer, Civil Rights, and Community Organizations on the CFPB Buy Now, Pay Later Interpretive Rule

These organizations support the CFPB’s conclusion that accounts used to access BNPL credit are credit cards that must comply with credit card rules governing disputes, errors, periodic statements and disclosures. Those protections will enhance the safety of BNPL credit and make it easier for consumers to manage their finances.

Coalition Letter to U.S. Department of Education Urging Immediate Unveiling of Hardship NPRM

227 organizations representing millions of students, borrowers, workers, people of color, veterans, people with disabilities, and consumers crushed under the weight of the student loan debt crisis, wrote to urge the Department of Education to immediately unveil its Notice of Proposed Rulemaking (NPRM) to provide student loan debt relief to student loan borrowers experiencing hardship.

Consumer Organizations and Attorneys Urge the Consumer Financial Protection Bureau to Issue a Final PACE Rule

The undersigned consumer organizations and attorneys write to urge the Consumer Financial Protection Bureau to issue a final PACE rule. Last year, we applauded the Bureau for proposing a strong rule that would ensure PACE borrowers receive critically important consumer protections under Regulation Z. But the proposed rule came five years after Congress amended the Truth in Lending Act (TILA)...

New Homes with Mortgages Backed by the Enterprises Should Meet Updated Building Energy Code Requirements

More than 120 affordable housing, consumer, health, energy efficiency, environmental, business, and other organizations at the national, state, and local levels joined this letter to urge the FHFA to direct the Government Sponsored Enterprises, Fannie Mae and Freddie Mac, to join the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) in requiring that all new...

Comment on Freddie Mac Proposed Purchase of Single-Family Closed-End Second Mortgages

From the comment's introduction: Many mortgage lenders are willing to offer cash-out refinances because the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, the Federal Housing Administration (FHA), or the Department of Veterans Affairs (VA) bear the credit risk. However, fewer lenders are willing to make home equity loans, especially to borrowers with lower credit scores, given the associated...

Education Department Should Expand Forgiveness of Capitalized Interest

CRL submitted a comment on the Proposed Rule by the U.S. Department of Education on Student Debt Relief for the William D. Ford Federal Direct Loan Program (Direct Loans), the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins) Program, and the Health Education Assistance Loan (HEAL) Program. The Proposed Rule is critically important to Black, Latino and...

Earned Wage Advance: States Should Regulate As Credit, Protect Consumers

Earned or Early Wage Advance (EWA) products offer workers access to their wages before payday, usually for a fee. While low-wage workers can benefit from EWA programs that are properly designed and regulated, they can instead be harmed when products are allowed into the marketplace without guardrails keeping their use and cost within reasonable bounds. States should regulate all EWA...

Coalition Opposing Earned Wage Access Consumer Protection Act (HR 7428)

The 193 labor, civil rights, consumer, legal services and community groups and academics joined in this letter to express opposition to the draft Earned Wage Access Consumer Act. In the guise of offering protections, the bill obscures its true effect: to exempt fintech cash advances from the Truth in Lending Act, to endorse a form of loan that makes workers...
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