California Lawmakers Pass Bill To Cap Payday Loans
Sonora, CA — The California legislature has approved a bill that would cap interest rates on payday consumer loans at 38-percent.
It impacts loans between $2,500 and $9,999 and is designed to protect consumers from predatory lending practices. Proponents claimed that some loan companies reportedly charge interest rates as high as 225-percent. Opponents of the bill argued that the rate cap may eliminate the ability of some people to get loans. The legislation also requires companies to provide a borrower education credit seminar.