Bill to Cap Payday Lender Rates Pulled

Riverside Press-Enterprise
May 5, 2010
Sieroty, Chris

A measure proposed by California Assemblywoman Nancy Skinner (D-Berkeley) that would cut interest rates on payday loans granted to unemployed borrowers was withdrawn before it could be scheduled for a hearing by the chamber's banking and finance committee. A spokesman for Skinner said she decided not to proceed with the bill because she was unwilling to amend it. The proposal would have lowered the interest rate on payday loans given to jobless borrowers to 36 percent, compared to California's current annual interest rate of 459 percent on such products. Ginna Green, a spokeswoman for the Center for Responsible Lending, said the political climate in Sacramento made it difficult to achieve meaningful legislation in support of consumers. "We will regroup and see what we can come up with next year. What made (this bill) such a no-brainer of a bill, was it was the same thing Congress passed in 2007 setting a cap for the military," she added.
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