Research

For the fifth consecutive year, a poll conducted by Lake Research Partners and Chesapeake Beach Consulting shows overwhelming and bipartisan support among likely voters for regulation and oversight of the financial services industry. Backing from Republicans is at historic highs. Voters also believe that Wall Street's influence in Washington is high and growing under the Trump administration, and are wary of lawmakers who take money from the industry. Download the polling memo (pdf) or view the toplines. (pdf)

Banks once drained $500 million from customers annually by trapping them in harmful payday loans. In 2013, six banks were making triple-digit interest payday loans, structured just like loans made by storefront payday lenders. The bank repaid itself the loan in full directly from the borrower’s next incoming direct deposit, typically wages or Social Security, along with annual interest averaging 225% to 300%. Like other payday loans, these loans were debt traps, marketed as a quick fix to a financial shortfall. In total, at their peak, these loans—even with only six banks making them—drained...

Students at Maine’s for-profit colleges carry higher levels of debt, borrow in higher percentages, and have worse repayment rates on that debt compared to their peers at public and private non-profit institutions. Because African Americans, females, and low-income students are disproportionately enrolled in Maine’s for-profit colleges, these poor outcomes fall more heavily on these vulnerable subgroups. This report uses the most recent data released from the U.S. Department of Education (College Scorecard, September 2016) to present a snapshot view of the condition of higher education within...

Students at Connecticut’s for-profit colleges graduate at lower rates than their peers at public and private non-profit institutions. Those who do graduate carry higher levels of debt and higher default rates on that debt. Because African Americans and Hispanics are disproportionately enrolled in Connecticut’s for-profit colleges, these poor outcomes fall more heavily on people of color. This report uses the most recent data released from the US Department of Education (College Scorecard, September 2016) to present a snapshot view of the condition of higher education within the state of...

With little difference across party lines, Coloradoans expressed their strong support for a proposal requiring debt buyers, companies that buy old debts and attempt to collect on them, provide appropriate documentation for the debts they collect and sue on. Survey respondents were asked this question: Would you support or oppose a law requiring debt buyers to provide documentation to the consumer and the court showing how much is owed, a copy of the contract and proof that they actually own the debt? Nearly nine out of ten voters—87%—said they would support the proposal. While 90% of Democrats...

Students at Colorado’s for-profit colleges have less favorable outcomes in comparison to their peers at public and private non-profit institutions according to several key indicators, and the impact is greater on students of color. This report uses the data released from the US Department of Education (College Scorecard, September 2015) and compares public, private, and for-profit institutions (also referred to as “colleges” or “schools”) on the basis of overall enrollment, average demographic makeup, completion rates, and indications of student financial burden post-graduation. Analyzing this...

Six years after the Great Recession, American households continue to struggle with consumer debt. According to data reported by the Urban Institute, approximately 77 million Americans – 35 percent of adults with credit files – have debt in collections reported on their credit files. These Americans carry about $1,349 in debt. About 31 percent of Colorado residents have debt in collections. Debt buyers purchase bad debts that were written off by the original creditor. They pay pennies on the dollar and try to collect the full amount. But they have so little information about the underlying...

This analysis provides a summary of the outline of proposals that the CFPB is considering to address debt collection and CRL’s initial reactions to it. As we review the proposal more closely, our reactions may evolve.

The 2015 mortgage data submitted by lenders under the Home Mortgage Disclosure Act (HMDA) reflects a market that troublingly continues to underserve important market segments. For people of color and low- to moderate-income families, access to credit remains tight. The data shows how lenders and secondary market actors underserve these consumers even as large banks continue to have access to U.S. Treasury funds at historically low rates. African-American, Hispanic, and low- to moderate-income borrowers all received a low share of home purchase loans and were more likely to be served by...

Payday lending is a high-cost loan product that is built on its ability to churn consumers through a cycle of debt, collecting fees for as long as possible. Fortunately, 15 states and the District of Columbia have made a definitive statement to prohibit high-cost payday loans by adopting interest rate caps of 36% or less. The experiences of consumers in payday-free states show that eliminating the payday debt trap brings a host of positive benefits. This report draws on years of research (including academic studies, surveys and focus group results) to outline and articulate the evidence from...