CRL, Civil Rights, Labor, and Consumer Groups on COVID-19: Full Relief for Working Families Highest Concern

The current stimulus package has fallen short, therefore, CRL and its national and state partners are actively elevating abusive payday lending practices, student debt cancellation, and additional mortgage relief as immediate priorities.

The collective might of more than 60 groups advocating for financially vulnerable Americans—people of color and low-to-moderate income families—declared common sense principles for COVID-19 relief on March 20. They were joined by an interfaith coalition of clergy and religious organizations through CRL’s Faith & Credit Roundtable. Also, a broad spectrum of Christian leaders opposed to usurious small dollar loans was mobilized to submit a letter backing extension of the Military Lending Act’s 36% rate cap to all Americans to protect families from economic exploitation during the pandemic. The current stimulus package has fallen short, therefore, CRL and its national and state partners are actively elevating abusive payday lending practices, student debt cancellation, and additional mortgage relief as immediate priorities.

A Return to Redlining? Prevent Proposed Community Reinvestment Act Changes

CRL is challenging another Administration attack on civil rights—the FDIC and OCC’s proposed changes to the Community Reinvestment Act (CRA). The CRA was designed to expand lending and investment in areas underserved by banks. Nearly a dozen national organizations, ignored by these agencies, recommended strategies to prevent a return to redlining and ensure that local banking needs are met. Low and moderate income families and communities of color deserve safe and affordable credit and greater clarity for lenders is required. Comment now, before the April 8, 2020 deadline!

CRL Joins Amicus Brief Before Supreme Court

Oral arguments before the Supreme Court were heard on March 3 in a case that would upend CFPB’s structure, oversight role, and ultimately jeopardize protections for those hardest hit by predatory lenders. CRL filed the brief on January 22 on behalf of Self-Help, HOPE Credit Union, INCLUSIV, and NALCAB. Previously, CRL condemned Director Kathy Kraninger’s alignment with the Justice Department urging SCOTUS to cede its independence to President Trump. The potential of undermining the CFPB’s independence has considerable state and national implications.

States Forge Ahead Amid Regulatory Threat

Californians for Economic Justice—a coalition of consumer, civil rights, faith leaders, and other organizations—led the fight in the state to cap interest rates at approximately 36% on installment loans of $2,500 to $10,000. The legislation received bipartisan support in both chambers of the state legislature and was signed into law by Governor Gavin Newsom. In 2018, nearly 350,000 loans, in the range of $2,500 to $9,999, carried an interest rate of more than 100% in California.

South Dakotans learned the sky didn’t fall two years after payday loans were made illegal by voter-affirmed rate cap. CRL’s subsequent Brookings blog post amplified its research findings, contrasting current federal developments designed to favor payday lenders and threaten state laws through rent-a-bank schemes, leaving millions vulnerable. Emboldened small dollar lenders are laundering their loans through banks to evade state rate caps, so learn about the latest in your state.

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