Following the passage of AB 539 by the California General Assembly on Friday night, the Online Lenders Alliance issued the following statement:
“Today, the California General Assembly finalized a rate cap that will deny credit access to millions of Californians looking for loans above $2500 and that will increase hardships for consumers facing unexpected emergencies or looking to consolidate more costly debt. Numerous unbiased economic studies, including those by The World Bank and the Federal Reserve, collectively agree that rate caps have negative unintended consequences.
“Californians are now at risk of experiencing higher fees on loans, decreased price transparency, a reduction in the amount of available lenders, and being forced into overdraft, late fees, and lost wages. It’s sad that politicians will claim a victory while working class Californians lose access and struggle to support their families.”
