AB 2500 would have been a historic step forward to help distressed Californians from falling victims to abusive predatory lending
SACRAMENTO, CALIF. – Last night, several members of the California Assembly succumbed to industry pressure and voted down AB 2500, the Safe Consumer Lending Act, a bill introduced by Assemblymember Ash Kalra (D-San Jose) to protect California families from abusive high-cost installment loans, including those made by car title lenders. Had it passed, the legislation would have substantially reduced the costs of consumer loans that are between $2,500 to $5,000. AB 2500 is the only consumer protection bill introduced this legislative session that received support from more than 100 California consumer, faith, civil rights organizations, and cities.
Center for Responsible Lending’s California Policy Director Graciela Aponte-Diaz released the following statement:
Assemblymembers just signaled to predatory lenders that it’s ok target distressed Californians into taking out abusive loans. Communities from across the state — including veterans, faith leaders, older Americans, and civil rights advocates — came together to push this bill forward because it was a reasonable approach to stop the industry from doing harm. The Assembly’s disservice to the public will have real consequences where consumers will suffer through bank penalty fees, damaged credit scores, delinquencies, garnished wages, and even bankruptcy. People around California and across the country want protections from these loan shark products — they’ve made their voices heard time and time again. I have no doubt that communities will continue to fight against these harmful products. We commend and thank Assemblymember Ash Kalra for his courage and leadership for making consumer protection a top priority.
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Ricardo Quinto at ricardo.quinto@responsiblelending.org.