100 Organizations Take Stand Against Predatory Lending in California

Is it Time to Stop Predatory Lending in California

It’s hard to believe, but in California, if you are getting a consumer loan for $2,500 or more, then there are NO LIMITS to the interest rate a lender can charge you!

High cost installment lenders are taking full advantage of this loophole and of California borrowers. In 2015, over 50% of consumer loans in the $2,500 to $4,999 range carried interest rates of more than 100% APR!

To address this problem, Assemblymember Ash Kalra introduced legislation, Assembly Bill 1109, which would cap the interest rates on these loans.  As a city council member in San Jose, Kalra had championed reforms to the payday lending market to better protect borrowers.

In a very short time, 100 organizations from around the state (listed below) submitted letters in support of AB 1109.

While Assemblymember Kalra recently decided to make AB 1109 into a two year bill, right now he is working with the chair of the Assembly Banking Committee, Matthew Dababneh, on a different bill, AB 784, that also represents a step forward in curbing predatory lending in California.

AB 784 would make a pilot program (Pilot Program for Increased Access to Responsible Small Dollar Loans) permanent. The program has for lenders who want to provide loans in the range of at least $300 but less than $2,500. However, in making the pilot permanent, the bill would now allow loans to be made under the pilot program from $300 up to $5,000. The pilot program limits interest rates, requires some level of underwriting, and offers additional consumer protections. While the rates under the pilot program exceed 36%, in recent years the pilot lenders have demonstrated the feasibility of lending at rates far below 100%.

CRC will be monitoring the progress of AB 784 closely. We are heartened to see 99 other organizations throughout California are in strong support of addressing predatory lending as indicated through their support of AB 1109. If you’re interested in learning more or getting involved, please contact Liana Molina, director of community engagement: LIANA AT calreinvest.org or (415) 864-3980.

The following 100 organizations support AB 1109:

9to5 California
9to5, National Association Of Working Women
Act For Women And Girls
Alliance Of Californians For Community Empowerment
American Association Of University Women – California
American Civil Liberties Union Of Northern California
Asian Law Alliance
Asian Pacific Planning & Policy Council
Black Women For Wellness
Board Of Missions And Social Justice Of Arlington Community Church
California Asset Building Coalition
California Association For Micro Enterprise Opportunity
California Capital Financial Development Corporation
California Child Care Resource And Referral Network
California Community Economic Development Association
California Domestic Workers Coalition
California Employment Lawyers Association
California Hunger Action Coalition
California Latinas For Reproductive Justice
California League Of United Latin American Citizens
California Partnership
California Reinvestment Coalition
California Women’s Law Center
California Work And Family Coalition
Career Ladders Project
Center For Popular Democracy
Center For Responsible Lending
Child Care Law Center
Clergy And Laity United For Economic Justice
Coalition For Humane Immigrant Rights
Community Housing Council Of Fresno
Community Housing Works
Community Legal Services Of East Palo Alto
Consumer Action
Consumer Attorneys Of California
Consumer Federation Of California
Consumers For Auto Reliability & Safety
Consumers Union
Courage Campaign
Dolores Huerta Foundation
Dreams For Change
Earn
East Bay Community Law Center
East La Community Corporation
Equal Rights Advocates
Faith In The Valley
Haven Neighborhood Services
Hunger Action Los Angeles
Jubilee East Bay
Koreatown Youth + Community Center
Legal Aid At Work
Little Tokyo Service Center
Metropolitan Area Advisory Committee
Mexican American Opportunity Foundation
Mission Economic Development Agency
Montebello Housing Development Corporation
Mujeres Unidas Y Activas
Multicultural Real Estate Alliance
Multicultural Real Estate Alliance For Urban Change
Mutual Housing California
My Path
National Baptist Convention Usa Housing And Economic Development Commission
National Council Of Jewish Women
National Council Of La Raza
Neighborhood Housing Services Of Los Angeles County
New Capital
New Economics For Women
Newman Hall-holy Spirit Parish
Northern California Community Loan Fund
Nuestra Casa
Pacoima Development Federal Credit Union
Parent Voices
Peoples’ Self Help Housing
Public Counsel
Public Law Center
Raising California Together
Religious Action Center Of Reform Judaism
Riverside Legal Aid
San Fernando Valley Young Democrats
San Mateo County Central Labor Council
San Mateo County Union Community Alliance
Services, Immigrant Rights And Education Network
St. Columba Catholic Church, Oakland
St. John’s Episcopal Church In Oakland
Sunnyvale Community Services
The Greenlining Institute
The Opportunity Institute
The United Food And Commercial Workers Western States Council
Tradeswomen, Inc.
Valley Economic Development Center
Vermont Slauson Economic Development Center
Voices For Progress
Voices For Progress Education Fund
Watts/century Latino Organization
Western Center On Law & Poverty, Inc.
Women’s Economic Ventures
Women’s Foundation Of California
Yolo Mutual Housing Association
Youth Leadership Institute
Ywca San Francisco & Marin

Celebrate California Reinvestment

The California Reinvestment Coalition holds our Celebrate Reinvestment events every year to honor organizations and leaders who are standing up on behalf of families and communities throughout our state.

Our event this year started with honoring Senator Mark Leno for his work standing up for consumers, including through the Survivor Homeowner Bill of Rights which went into effect in January this year.  CRC has heard from attorneys that they are already successfully using this new law to prevent needless foreclosures against seniors.

CRC17-198

Senator Mark Leno, co-author of SB 1150

Next, we honored the A1 Ballot Measure Champions whose successful advocacy resulted in $580 million in new funding dedicated to preserving and creating affordable housing for working families in Alameda County.

CRC17-049

The A1 Ballot Champions

Our final awardee was the director of the Consumer Financial Protection Bureau, Richard Cordray. The CFPB opened its doors in July 2011, and since that time, more than 28 million Americans have benefited from the bureau’s work against unscrupulous actors and predatory products and practices.  CRC members advocated strongly for the creation of the CFPB and for Director Cordray to be confirmed, and we will continue our advocacy to ensure consumers have this important agency in their corner.

CRC17-207

Richard Cordray, Director of the Consumer Financial Protection Bureau

We are deeply grateful to the awardees, to our attendees, and to our sponsors. 

If you are interested in sponsoring CRC’s Celebrate Sacramento Reinvestment or Celebrate Los Angeles Reinvestment events later this year, please contact Jessica Escobar in our office (jescobar AT calreinvest.org or: 415- 864- 3980).

Editor’s note: If you’d like to see a larger version of the photos below, click on one of them and it will bring up a slide-show with one picture at a time. You can then click on arrows to advance through the pictures. A big thank you to our photographer, Alain McLaughlin.