Refund anticipation loans (RALs) are usurious short-term loans secured by the taxpayer’s expected tax refund. About 12 million taxpayers took out RALs in 2004, costing them over $1 billion dollars in loan fees. This report documents a new form of RALs called “pay stub” and “holiday RALs.” Pay stub RALs are RALs made by tax…
Read More about Pay Stub and Holiday RALs: Faster, Costlier, Riskier in the Race to the Bottom
Why is it important to correct errors in my credit report? What can I do if there is an error in my credit report? These questions and more are answered in NCLC’s Facts for Older Consumers: Disputing Errors in a Credit Report.
NCLC has long advocated for stronger reforms to ensure accuracy and fairness in the U.S. credit reporting system. We have testified many times before Congress, including before this Committee, on the need for reform of the credit reporting system to address issues such as unacceptable error rates, the travesty of the automated dispute system used…
The use of credit scores in home and auto insurance is a poorly understood phenomenon with a huge economic impact on Americans. It’s also a practice that creates wide racial disparities. This report presents an overview of credit scores, which are three digit numbers designed to predict risk based on a consumer’s credit record. The…
Approximately 64 million consumers in the United States have no credit history or lack sufficient credit history to generate a credit score, cutting off access to traditional banking services. Finding a way of getting affordable access to credit is of vital importance to the economic well-being of this population. It also represents an untapped market…
Read More about Big Data, a Big Disappointment for Scoring Consumer Credit Risk
A research consultant has recently produced several reports promoting utility company reporting of all customer payment behaviors and transactions to the major consumer reporting agencies (CRAs). Proponents of full utility reporting contend that it is required to help “thin file” and “no file” consumers to build credit history and gain access to bank loans and…
Read More about Full Utility Credit Reporting: Risks to Low Income Consumers
This issue brief discusses the risks and harms of full-file utility credit reporting, which urges utility companies to engage in monthly reporting of customer payments, including late payments, to the Big Three credit bureaus. In a time of skyrocketing energy costs, full file utility credit reporting will result in negative information being reported to the…
Read More about Full File Utility Credit Reporting: Potential Harms to Low-Income Consumers
Listing of resources to help Massachusetts consumers.
What is the Affordable Connectivity Program (ACP)? ACP is a broadband benefit program for low-income households. ACP provides eligible households with a discount of up to $30 a month to lower the cost of broadband service (and up to $75 a month for low-income households on Tribal lands). Some internet providers also offer an ACP…
From August 1, 2017 through July 31, 2018, the Massachusetts Department of Public Utilities (DPU) reported receiving approximately 832 complaints about competitive energy supply companies. Consumers reported aggressive and deceptive marketing practices targeting vulnerable consumers, as well as excessively high electric bills and difficulty cancelling contracts with energy suppliers. These complaints echo the same problems…
The Massachusetts Low-Income Energy Affordability Network (LEAN) is an association of nonprofit agencies that coordinate the delivery of government and utility-funded energy efficiency services to low-income utility customers throughout Massachusetts. Since 1997, LEAN’s member agencies have delivered energy efficiency upgrades to more than 100,000 low-income Massachusetts households. Still, up to 200,000 low-income homes still need…
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