The National Consumer Law Center (NCLC) is a Boston-based advocacy organization based in Boston, Massachusetts that develops and promotes left-of-center solutions to issues related to consumer law and regulation of the financial industry. ^[1] NCLC was instrumental in the creation of the Consumer Financial Protection Bureau (CFPB) under President Barack Obama. ^[2]

In 2017, the organization fought President Donald Trump’s interim replacement of CFPB director Richard Cordray, who had resigned to run as a Democrat for Governor of Ohio and purported to appoint his own replacement. ^[3] In 2020, NCLC filed a lawsuit against the U.S. Department of Education Secretary Betsy DeVos over student debt collections and endorsed Congressional Democrats’ proposed COVID-19 relief package. ^{[4] [5]}

History

National Consumer Law Center was founded as a part of President Lyndon Johnson’s “Great Society” package of federal welfare programs. The Equal Opportunity Act of 1967 established the Office of Economic Opportunity (OEO) to coordinate federal anti-poverty initiatives. ^[6] In 1969, the OEO invited the Boston College Law School to apply for funding to create a “Center for Consumer Affairs.” ^[7] The proposal was accepted and the NCLC began operations later that year. In 1972, NCLC left Boston College Law School and became an independent entity. A Washington, D.C. office was opened in 1980. ^[8]

Mission

National Consumer Law Center advocates for left-of-center consumer and financial regulatory and welfare policies, such as student loan forgiveness. ^[9] It develops and provides resources to private attorneys and participates in litigation related to consumer law and energy policies. ^[10] NCLC also engages in policymaking efforts at the state and federal levels. ^[11]

Programs

In partnership with the National Community Action Foundation and other left-of-center organizations, National Consumer Law Center’s Climate Change Justice project calls for financial support for low-income households and “vulnerable” communities it claims will face economic hardship due to climate change and other environmental changes. ^[12] NCLC supported the Climate Protection Act of 2013, legislation written by Senator Bernie Sanders (I-VT) that would have effectively implemented a carbon tax if passed. ^{[13] [14]}

NCLC’s Student Loan Borrower Assistance Project provides repayment strategy resources for student loan borrowers and their representatives. ^[15] In 2013, NCLC released a report criticizing the student loan debt relief industry and accused companies of violating consumer protection laws. ^[16]

Advocacy

Consumer Financial Protection Bureau

In 2007, NCLC helped organize Americans for Fairness in Lending (AFFIL), an activist organization that was instrumental in the creation of the Consumer Financial Protection Bureau (CFPB) under President Barack Obama. ^{[17] [18]} AFFIL disbanded shortly after CFPB’s establishment, but NCLC continued efforts to influence the agency. In 2011, NCLC encouraged CFPB to start exercising its powers and investigate financial services businesses despite not yet having a director in place. ^[19]

When Obama administration-appointed CFPB Director Richard Cordray announced his resignation in 2017 to run as a Democrat for Governor of Ohio, NCLC fought efforts by President Donald Trump to name an interim replacement. ^[20] NCLC joined an amicus brief in support of Deputy CFPB Director Leandra English’s injunction to continue serving as acting director, despite President Trump’s appointment of then-U.S. Office of Management and Budget Director Mick Mulvaney. ^[21] The injunction was denied by a federal judge. ^[22] Deepak Gupta, the attorney who represented English, joined NCLC’s board of directors in 2018. ^{[23] [24]}

2020 Department of Education Lawsuit

In May 2020, NCLC sued the US. Department of Education and Secretary Betsy DeVos over wage garnishments from student borrowers. ^[25] The lawsuit accused the Department of continuing to garnish wages in violation of the recently passed CARES Act that provided relief for debtors due to the COVID-19 pandemic. ^[26] However, DeVos had directed the Department to halt all collections and wage garnishments and issue refunds dating back to March 13, 2020, before the CARES Act was implemented. ^[27]

Democratic COVID Bill

NCLC endorsed the Democratic-backed proposal for COVID-19 relief. ^[28] The bill proposed $3 trillion in spending included expanded debt relief and supplemental support for utility payments. ^[29] In a statement, NCLC’s Student Loan Borrower Assistance Project director Persis Yu praised measures within the proposal that would provide $10,000 in student loan forgiveness. ^[30]

Funding

NCLC is registered as a 501(c)(3) non-profit organization with the IRS. ^[31] According to a 2019 financial statement, the organization holds over $50.8 million in total assets and received over $11 million in contributions and other revenues in 2019. ^[32]

NCLC claims it has been independently fundraising for over 20 years and receives support from individual contributors and private foundations such as the Ford Foundation and the New Venture Fund. ^[33] In 2017 George Soros’s Foundation to Promote Open Society contributed $300,000 to NCLC for general support. ^[34] In 2018, philanthropists Laura and John Arnold contributed over $750,000 directly and through the John and Laura Arnold Foundation. ^[35] NCLC has also received support from taxpayer-funded entities including the U.S. Administration on Aging. ^[36]