Los Angeles County Supervisor Hilda L. Solis released the following statement after Gov. Gavin Newsom signed AB 539 (high cost loans) into law:
“For too long, low-income communities of color have been taken advantage of by high-cost lenders, trapping consumers in loans that they cannot afford to repay, undercutting their financial well-being, and impacting their families, businesses, and communities. Over the last decade we have seen these loans proliferate around the state, with more than 350,000 loans per year with triple-digit interest rates.
AB 539, an LA County-sponsored bill, establishes a reasonable interest rate cap on these loans, thereby protecting consumers from an unrelenting cycle of debt.
Thank you to Assemblymember Monique Limón for authoring this bill, and to Governor Newsom for signing this crucial bill for our communities into law. I also want to thank our broad coalition of local governments, community and faith-based organizations, and responsible lenders for their hard work in advancing this legislation. With AB 539 signed into law, I am committed to continuing to work with our communities and partners to establish safe lending options, along with enhancing a comprehensive array of economic opportunities for our most economically vulnerable residents.
California now joins 39 other states that cap interest rates on these types of loans. Today is a great day for our communities.”