In states across the country, the rent-to-own (RTO) industry is abusing the criminal system to extract payment from low-income consumers who have fallen behind on payments on abusive contracts. Under little-known laws often written years ago by the industry lobby, RTO companies are able to turn a dispute over a furniture set into threats of…
Ten years ago, the National Consumer Law Center (NCLC) issued Automated Injustice: How a Mechanized Dispute System Frustrates Consumers Seeking to Fix Errors in their Credit Reports, the landmark report on the serious dysfunctions in the American credit reporting system. Since then, the Consumer Financial Protection Bureau (CFPB) began exercising supervision authority over the Big…
As we approach the fifth year anniversary of the proposed rulemaking on debt collection, and the regulatory process appears to be moving forward, the 74 undersigned consumer, community, civil rights, faith, labor and legal services groups write to urge the Consumer Financial Protection Bureau (“Consumer Bureau”) to focus on protecting consumers from abusive debt collection…
This primer is intended to support advocates seeking to identify policy reforms to address the problems with current criminal justice debt practices and restore integrity to our justice system. It begins with a brief overview of some of the most harmful consequences of current criminal justice debt practices, then provides recommended reforms, and ends with…
Pricing for add-on products sold by car dealers, such as service contracts, GAP (Guaranteed Asset Protection), and window etching, is not transparent o consistent. Consumers, and even most regulators, lack information about what car buyers are charged for these products and what a reasonable price might be. Dealers decide what to charge each consumer and…
Read More about Transparent and Consistent Pricing of Motor Vehicle Add-Ons Act
Analysis of States’ APR Caps for a $10,000 five-year Installment Loan Everything that is wrong with a high-cost loan is only made worse when the loan is larger and longer. Even when the interest rate is lower than for a short-term payday loan, a larger, longer high-cost loan can be a deeper, longer debt trap.…
Read More about Predatory Installment Lending in the States: A Larger and Longer Debt Trap? (2018)
46 consumer, community, civil rights and legal services groups submitted comments in response to the Consumer Financial Protection Bureau (“CFPB”)’s Request for Information (“RFI”) regarding its adopted regulations and new rulemaking authorities. In these comments, the groups focus on the CFPB’s new authority to write debt collection rules.
Appendix to the 2018 Consumer Protection in the States report.
Read More about Appendix C: State-by-State Summaries of State UDAP Statutes
