Bill to stop predatory lending is set for committee vote on Monday, April 2.

OAKLAND, CALIF. – The Center for Responsible Lending (CRL), African American Methodist Episcopal Church - 5th Episcopal District, Asian Law Alliance, Coalition for Humane and Immigrant Rights (CHIRLA), UnidosUS, and Western Center on Poverty, with support from 99 California consumer, faith, and civil rights organizations, and cities throughout the state are urging the Assembly Committee on Banking and Finance, to support AB 2500, the Safe Consumer Lending Act. The bill would protect California families from abusive high-cost installment loans. The organizations’ support for the bill comes as the committee is set to consider on Monday, April 2, at 3:30 p.m. whether or not AB 2500 moves out of committee.

The Safe Consumer Lending Act was introduced by Assemblymember Ash Kalra (D-San Jose) in February. The legislation would extend California’s current interest rate cap for consumer loans of $2,500 to $10,000. Principal co-authors include Sen. Holly J. Mitchell (D-Los Angeles) and Sen. Steven Bradford (D-Los Angeles). Elected officials from the following cities have also come out in support of AB 2500: City of Berkeley, City of Long Beach, City of San Jose, City of East Palo Alto, City of Norwalk, City of Pico Rivera, City of Sunnyvale, and City of San Francisco.

CRL, African American Methodist Episcopal Church - 5th Episcopal District, Asian Law Alliance, CHIRLA, UnidosUS, and Western Center on Poverty are cosponsoring the bill and have sent letters to the banking committee expressing their support for the legislation. The organizations released the following joint statement:

Many Californians are living paycheck to paycheck. Stagnant wages, high cost housing, childcare costs, and other financial strains are contributing factors that we urge legislators to address. California legislators have declared that our state is and must always be a refuge of justice and opportunity for all. We urge our representatives to include economic justice in this platform, by protecting Californians from costly and abusive financial products that strip wealth from our communities. For these reasons, our organizations strongly support AB 2500 and respectfully urge the Assembly Committee on Banking and Finance to support this effort in protecting California consumers.

Full list of supporting organizations and cities in support of AB 2500:

  • AARP California
  • ACCE Action
  • Alameda County Community Food Bank
  • Asian Law Alliance
  • California Advocates for Nursing Home Reform
  • California Asset Building Coalition
  • California Child Care Resource and Referral Network
  • California Community Economic Development Association
  • California Labor Federation
  • California Low-Income Consumers Coalition (CLICC)
  • California LULAC
  • California Reinvestment Coalition
  • California Resources and Training
  • California Women's Law Center
  • CALPIRG
  • Chicano Latino Caucus
  • Civic Center Harris Housing Corporation
  • Clergy and Laity United for Economic Justice (CLUE)
  • Color of Change
  • Community Financial Resources
  • Community Housing Council of Fresno
  • Community Housing Development Corporation
  • Consumer Action
  • Consumer Attorneys of California
  • Consumers for Auto Reliability and Safety
  • Consumers Union
  • Courage Campaign
  • East Bay Community Law Center
  • East LA Community Corporation
  • Equal Rights Advocates
  • Esperanza Community Housing Corporation
  • First United Methodist Church of San Fernando
  • FreeFrom
  • Fresno CDFI
  • Goodwill Industries
  • The Greenlining Institute
  • Haven Neighborhood Services
  • Health Access California
  • Housing and Economic Rights Advocates
  • Housing Rights Center
  • Inland Fair Housing and Mediation Board
  • Jewish Center for Justice
  • Jewish Family Services of Los Angeles
  • Jubilee East Bay
  • Jubilee San Diego
  • LAANE (LA Alliance for a New Economy)
  • La Raza Community Resource Center
  • Little Tokyo Service Center
  • Mexican American Opportunity Foundation
  • Mission Asset Fund
  • Mission Economic Development Agency (MEDA)
  • MyPath
  • National Baptist Convention USA, Inc
  • National Consumer Law Center
  • New Economics for Women
  • Northern California Community Loan Fund
  • Nuestra Casa de East Palo Alto
  • One Treasure Island
  • PACE Finance Corp
  • Peoples' Self-Help Housing
  • PolicyLink
  • Presbyterian Church (USA)
  • Presente.org
  • Project Sentinel
  • Prosperity Now
  • Public Counsel
  • Public Law Center
  • Riverside Legal Aid
  • S.T.A.N.D.
  • Sacramento Housing Alliance, Darryl Rutherford
  • Saint Mark United Methodist Church Los Angeles
  • SAJE (Strategic Actions for a Just Economy)
  • San Fernando Valley Young Democrats
  • San Francisco Office of Financial Empowerment
  • San Mateo County Central Labor Council,
  • Silicon Valley Community Foundation
  • St. Columba Catholic Church
  • Sunnyvale Community Services
  • Thai Community Development Center
  • Tipping Point Community
  • University of San Francisco
  • Urban Strategies Council
  • Voices for Progress
  • Watts/Century Latino Organization

For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Ricardo Quinto at ricardo.quinto@responsiblelending.org.