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NCLC in the News

Select media clips. Journalists interested in speaking with an expert at the National Consumer Law Center should contact Jan Kruse (This email address is being protected from spambots. You need JavaScript enabled to view it. or 617.542,8010).

Press Releases

Advocates Applaud CFPB Proposed Debt Collection Rules but Additional Provisions Are Needed

FOR IMMEDIATE RELEASE: JULY 28, 2016 || Contacts:: This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it., 617-542-8010

(WASHINGTON) New proposed debt collection rules outlined today by the Consumer Financial Protection Bureau (CFPB) will significantly strengthen consumer protections against debt collection abuses, but even stronger action is needed due to the rampant debt collection abuses prevalent today, according to advocates at the National Consumer Law Center (NCLC).

“Nearly 40 years after Congress passed the Fair Debt Collection Practices Act, too many debt collectors pursue the wrong person or the wrong amount. Instead of simply requiring collectors to have full and accurate information, the CFPB proposal sets up a complicated and inadequate system that lets collectors rely on information that may be inaccurate,” said Margot Saunders, an attorney with the National Consumer Law Center.

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NCLC and 50 Groups File Petition with FCC to Stop Millions of Robocalls to Cell Phones

FOR IMMEDIATE RELEASE: JULY 26, 2016 || Contacts: NCLC:  This email address is being protected from spambots. You need JavaScript enabled to view it. or 617.542.8010; This email address is being protected from spambots. You need JavaScript enabled to view it.; Consumers Union: This email address is being protected from spambots. You need JavaScript enabled to view it. or 415.902.9537

FCC’s Unsupported Ruling Opens Floodgates to Calls by Federal Contractors

(WASHINGTON) The National Consumer Law Center, on behalf of its low-income clients, and 50 other national, state and local civil legal aid, civil rights, and public interest groups filed a petition today with the Federal Communications Commission urging reversal of its recent Declaratory Ruling in the Broadnet case. The FCC’s ruling allows federal contractors that are agents of the government to make unlimited robocalls to consumer cell phones without consent, and eliminates the ability of consumers to stop these calls. Groups joining the petition include Americans for Financial Reform, Center for Responsible Lending, Consumer Action, Consumer Federation of America, Consumers Union, Justice in Aging, NAACP, National Association of Consumer Advocates, National Association of State Utility Consumer Advocates, National Legal Aid & Defender Association, Public Citizen, Public Justice, and U.S. PIRG.

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NCLC Report: Why High-Rate Installment Lenders Want Borrowers Who Will Default

FOR IMMEDIATE RELEASE: JULY 21, 2016 || Contacts: Lauren Saunders (This email address is being protected from spambots. You need JavaScript enabled to view it. or 202.595.7845) or Jan Kruse (This email address is being protected from spambots. You need JavaScript enabled to view it. or 617.542.8010)


Access full report, charts, and additional resources: http://bit.ly/2a8I9T5

(WASHINGTON) As the Consumer Financial Protection Bureau prepares to tighten rules for payday loans, lenders are moving into dangerous high-rate installment loans, according to a new report from the National Consumer Law Center (NCLC). Misaligned Incentives: Why High-Rate Installment Lenders Want Borrowers Who Will Default details how high-rate installment lenders can make a profit on unaffordable loans.

“Just like short-term payday loans, high-rate installment loans produce dysfunctional dynamics where the lender can turn a profit even if the borrower defaults and is left with the devastating consequences of an unaffordable loan,” said Lauren Saunders, associate director of NCLC and co-author of the report. The report demonstrates how loans that default may in some circumstances even be more profitable than ones that are repaid early.

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Report Finds Wall Street Investment Companies Chasing Profits From Predatory Real Estate Product with Racist Roots

FOR IMMEDIATE RELEASE: JULY 14, 2016 || NCLC Contact: Jan Kruse, 617-542-8010, This email address is being protected from spambots. You need JavaScript enabled to view it.
CFPB Urged to Rein in Land Installment Contracts
See full report, including a map, charts, and all recommendations: http://bit.ly/29sPcEv

(BOSTON) A new wave of predatory real estate lending, previously peddled to African-Americans during the 1930s to 1960s, is popping up across the nation as Wall Street investment companies move to profit off foreclosed homes, according to a new report by the National Consumer Law Center (NCLC). Toxic Transactions: How Land Installment Contracts Once Again Threaten Communities of Color details how land contracts are marketed disproportionately to low-income families of color as an alternative path to homeownership but instead allow investors to avoid responsibility for property upkeep while churning successive would-be homeowners through a property they could not legally rent. “This predatory financial product sucks away hard earned dollars from people who believe they are investing in the dream of homeownership, only to find it was a mirage,” said Sarah Bolling Mancini, of counsel to the National Consumer Law Center and co-author of the report. “Particularly in credit-starved communities of color, companies pushing land installment contracts are taking away the home equity that should be built up by the people living in these communities and transferring it to Wall Street-backed investors. Action is urgently needed to stop this unfair and deceptive product before it puts more consumers at risk.”

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FHA Note Sales Should Cease until Homeowners are Fully Protected

National Consumer Law Center Advocates Say Homeowners Need More Protections

(WASHINGTON) Yesterday, the U.S. Department of Housing and Urban Development (HUD) announced changes to the Distressed Asset Stability Program (DASP), which sells defaulted Federal Housing Administration (FHA) mortgage loans to for-profit buyers at a discount.

When loans are sold in the DASP program, the homeowners lose important government protections that help ward off foreclosure. HUD’s announcement seeks to fill this gap with a requirement for servicers to consider reducing loan principal to make loans more affordable. “We agree that principal reductions are sorely needed, but HUD’s approach is to leave the decision solely to the discretion of the loan buyers,” said Geoff Walsh, attorney at the National Consumer Law Center (NCLC). “Note sales should include publicly available, enforceable standards to regulate what these buyers must do. Homeowners who are not offered principal reduction should be notified they were found ineligible and should be provided with supporting documentation.”

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National Consumer Law Center Names Steve Hurley as Chief Development Officer

(BOSTON) The National Consumer Law Center (NCLC), a nonprofit with headquarters in Boston and an office in Washington, D.C., has named Steve Hurley as chief development officer, effective June 6, 2016. The organization works for economic justice for low-income and other disadvantaged people in the United States.

As chief development officer, Hurley will lead NCLC’s development and communications team. One of his first tasks is to lead the search to hire a director of leadership giving and engagement for NCLC.

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NCLC to testify before the Chicago City Council on harms of forced arbitration by contractors in consumer and employment agreements

FOR IMMEDIATE RELEASE: JUNE 14, 2016 || CONTACTS: Jan Kruse, This email address is being protected from spambots. You need JavaScript enabled to view it. or David Seligman This email address is being protected from spambots. You need JavaScript enabled to view it.

Proposed Ordinance Would Ban Contractors from Using Forced Arbitration Clauses in Consumer and Employment Agreements

(BOSTON) Tomorrow, the Chicago City Council’s Committee on Finance will hear testimony in support of an ordinance that would prevent companies that do business with the City from using or enforcing forced arbitration clauses in their agreements with consumers and employees. Forced arbitration requires a person to take a dispute to a private, biased arbitrator chosen by the company, rather than to exercise her constitutional right to have her complaint heard before an impartial judge and jury. National Consumer Law Center (NCLC) Contributing Author David Seligman will testify on behalf of NCLC and its low-income clients about the harms to the public from forced arbitration at the hearing.

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