In Major Blow to Working Families, CA Assembly Sides with Predatory Lenders
SACRAMENTO, Calif.—UnidosUS (formerly the National Council of La Raza) laments the California lawmakers’ failure to reign in abusive practices from the payday lending industry through AB 2500, the Safe Consumer Lending Act, a bill introduced by Assembly Member Ash Kalra’s (D-San Jose) to protect California families from abusive high-cost installment loans, including those made by car title lenders. AB 2500, which had robust support from more than 100 California consumer, faith, civil rights organizations and cities, would have provided much-needed protections for California borrowers. The California Assembly voted down the bill 26-29, with 23 members abstaining.
“We regret the outcome of Thursday’s vote and the decision the California Assembly made to propagate the financial abuse of California’s most vulnerable communities. With this vote, California lawmakers took a shameful step to protect unscrupulous lenders, rather than hold them accountable,” said Marisabel Torres, Senior Policy Analyst at UnidosUS.
“We will continue to work with our partners to ensure Californians have access to safe and affordable financial services, and we will continue to educate our legislators to help ensure the economic stability of their communities is guided by smart policy decisions,” concluded Torres.