Media Center

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

New Law Allows Mortgage Lenders to Resume Risky Loans, Hide Discrimination and Engage in Rural Lending Abuses

FOR IMMEDIATE RELEASE: May 23, 2018 || Contacts: Alys Cohen (This email address is being protected from spambots. You need JavaScript enabled to view it.) or (202) 595-7852; Stephen Rouzer (This email address is being protected from spambots. You need JavaScript enabled to view it.) or (202) 595-7847

WASHINGTON – Yesterday, the U.S. House of Representatives passed the Senate’s bill, S. 2155, the “Bank Lobbyist Act,” stripping consumers of key protections Congress enacted after the recent financial crisis that devastated communities and crashed the market. The White House issued a Statement of Administrative Policy in support of the bill. The new law rolls back a range of housing and other protections, leaving homeowners more exposed to lending abuses.

“We need a market that works for all borrowers, not a widening of the wealth and fairness gap,” said Alys Cohen, staff attorney in the Washington office of the National Consumer Law Center. “In the guise of relief for small banks, Congress has voted to make it easier to hide information on lending discrimination, to make unaffordable mortgage loans, and to expose rural homeowners to abusive and overpriced loans.”

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CFPB Payday Rule Survives Legislative Threat, Remains Intact For Now

FOR IMMEDIATE RELEASE: MAY 17, 2018 || Contacts: Lauren Saunders, This email address is being protected from spambots. You need JavaScript enabled to view it. or (202) 595-7845; Jan Kruse, This email address is being protected from spambots. You need JavaScript enabled to view it.; (617) 542-8010

Advocates urge consumer bureau to preserve and enforce the rule, protect consumers against payday lending debt trap

WASHINGTON, D.C. - Congressional Review Act (CRA) resolutions—S.J. Res 56 and H.J. Res 122—to repeal the Consumer Financial Protection Bureau’s (CFPB or consumer bureau) payday and car title lending rule will not advance in Congress, as their legislative clock has expired. The CFPB rule, finalized in October, establishes basic consumer protections on these 300% or more interest loans, including the common sense standard that lenders should have to verify a borrower’s ability to repay before making the loan. Consumer and civil rights advocates are urging the consumer bureau to keep intact the rule, which is set to go into effect summer 2019, and to fulfill the bureau’s responsibility to enforce the law.

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Financial Regulators Should Not Sanction High-Cost Unaffordable Loans

For Immediate Release: May 14, 2018  ||  Contact: This email address is being protected from spambots. You need JavaScript enabled to view it., 503-984-4020

As the OCC soon clarifies its position on small dollar loans, it should ensure loans are reasonably priced and based on account holders’ income and expenses

WASHINGTON, D.C. – The Center for Responsible Lending, Americans for Financial Reform, National Consumer Law Center (on behalf of its low income clients), U.S. PIRG, Missouri Faith Voices—a Federation of Faith in Action, Consumer Federation of America, UnidosUS, and NAACP sent a letter urging federal bank regulators to prevent high-cost loans by banks and credit unions—whether short-term, balloon payment payday loans (also known as “deposit advance” loans) or high-cost longer-term installment loans.

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Advocates Condemn Move by Consumer Bureau’s Mulvaney to Shutter Student Loan Division that Uncovered Major Abuses by Predatory Lenders

FOR IMMEDIATE RELEASE: MAY 9, 2018 || Contacts: Persis Yu (This email address is being protected from spambots. You need JavaScript enabled to view it.) or Jan Kruse (This email address is being protected from spambots. You need JavaScript enabled to view it.); (617) 542-8010

Boston – In an announcement today that he is closing the Consumer Financial Protection Bureau’s Office of Students and Young Consumers, Interim Director Mick Mulvaney has eliminated a key watchdog that has been working to protect 44 million student loan borrowers from rampant abuses by servicers, debt collectors, and predatory lenders.

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Congress Votes to Roll Back Consumer Bureau Effort to Thwart Auto Lending Discrimination

FOR IMMEDIATE RELEASE: May 8, 2018|| Contact: Jan Kruse (This email address is being protected from spambots. You need JavaScript enabled to view it.); (617) 542-8010

Boston – The U.S. House of Representatives today voted to repeal guidance issued in 2013 by the Consumer Financial Protection Bureau to help auto finance companies avoid racial and ethnic discrimination by holding them accountable to fair lending laws. “It’s outrageous that Congress voted to claw back this five-year old guidance intended to ensure our auto loan markets are free of racial discrimination,” said Stuart Rossman, director of litigation at the National Consumer Law Center. The auto finance market unfortunately has a demonstrated history of charging people of color more for their loans than the prices paid by white people with the same creditworthiness.”

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Illegal Kickback Scheme Nearly Doubles the Cost of Privatized Calls made by Prisoners in Massachusetts Corrections Facilities, Lawsuit Alleges

For Immediate Release: May 4, 2018 ||  Contacts

Download the complaint: http://bit.ly/comp-securus

Consumer and Prisoners’ Rights Groups Argue Agreement between Securus Technologies and the Bristol County Sheriff’s Office Harms Consumers, Should be Halted

Boston – An illegal kickback scheme between the Bristol County Sheriff’s Office (BCSO) in Massachusetts and Securus Technologies (Securus)—a company that operates privatized telephone systems in U.S. correctional facilities—is inflating the cost of calls and harming Massachusetts consumers, according to a lawsuit filed Wednesday afternoon.

Prisoners in Bristol County who want to communicate by phone with family, friends, and legal representatives have only one option available: they must use the privatized system operated by Securus. The cost of these calls is grossly inflated—approximately doubled—because Securus agreed to pay the BCSO illegal kickbacks in order to secure its exclusive phone service contract—and now passes along the costs of those payments to prisoners’ loved ones and attorneys.

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CFPB Should Not Weaken its Investigations of Wrongdoing

FOR IMMEDIATE RELEASE: APRIL 26, 2018 ||  Contacts 

Advocates Urge the Consumer Bureau to Retain a Robust Process to Investigate Potential Violations of the Law and Consumer Harm

WASHINGTON– More than 50 consumer, community, civil rights and legal services groups urged the Consumer Financial Protection Bureau (CFPB) to “retain broad, flexible and nimble authority to investigate potential violations of the law and consumer harm,” in comments submitted in response to the consumer bureau’s Request for Information (“RFI”) regarding Civil Investigative Demands and associated processes used to investigate wrongdoing.

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Education Department Unlawfully Withholding Records Concerning Delay of Rule to Protect Student Borrowers from Fraud

For Immediate Release: April 19, 2018 || Contacts

Consumer Group Argues Agency Did Not Conduct Adequate Search and Is Improperly Withholding Requested Documents

WASHINGTON, D.C. – The U.S. Department of Education must hand over records related to its justification for delaying implementation of a rule to help student loan borrowers, including records of communications between agency officials and representatives of the for-profit college industry, the National Consumer Law Center (NCLC) said in a lawsuit filed today.

Public Citizen Litigation Group serves as co-counsel with NCLC in this lawsuit brought against the department in the U.S. District Court for the District of Massachusetts.

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