The Online Lenders Alliance sent a letter to Members of the California Assembly Apparitions Committee expressing strong opposition to AB 784. This legislation seeks to impose an interest rate cap for consumer loans between $300 and $5,000, greatly limiting an important source of funds for millions of underbanked consumers in California.
If enacted, AB 784 will negatively impact millions of Californians who have a FICO score of less than 700. According to a recent study by the Fair Isaac Corp, 46 percent of consumers have FICO scores below 700. These consumers understand the risks and benefits of these products and have unique borrowing needs that won’t be met if AB 784 passes, which is why OLA opposes this legislation.