Stop the Debt Trap
Payday lenders have begun pushing financially vulnerable consumers into a larger unregulated loan product that comes with interest rates of 100% to 225%. Far too often, these unaffordable interest rates cause borrowers to default on their loans, which destroys their credit and can lead to bank account closures, wage garnishments, and vehicle repossessions.
Loans should be designed to help Californians manage their budgets and improve their financial well-being, but instead some lenders rely on these high-cost loans to extract exorbitant fees until a borrower can no longer stay afloat. Our state law already protects borrowers from unconscionable fees by prohibiting interest rates above 36% for loans of $2,500 or less. Assembly Bill 539 would extend this protection to loans between $2,500 and $10,000.
Assembly Bill 539 is supported by a broad coalition of organizations that promote the well-being of California families, including AARP, Equal Rights Advocates, the League of United Latin American Citizens, United Ways of California, Western Center on Law and Poverty, and the California Association of Veteran Services Agencies. Local governments across the state – from Vallejo and San Francisco to Los Angeles and San Diego – have passed resolutions to support this effort. And a large group of responsible lenders have partnered with community groups, consumer advocates, and religious organizations to help pass this bill.
Find out how much you would have to pay for a loan under the cap set up by AB 539 and how much more you have to pay now. Click here to use the debt calculator and show your support for AB 539.
Social Media Graphic