South Coast Legislator Moves To Limit High Interest Short Term Loans
A bill by a South Coast legislator intended to help people in financial trouble from being trapped by high cost loans has been passed by the State Assembly. AB 539 would cap interest at 36%, plus the federal funds rate on installment loans in the $2500 to $10,000 range.
The bill is sponsored by Democratic State Assemblywoman Monique Limon of Santa Barbara. Efforts to pass legislation to protect people from unreasonable loan conditions have stalled for years, due to resistance from the loan industry.
However, Limon says this bill is a compromise which has received bipartisan support. It now goes to the State Senate for consideration.