California Governor Signed Into Law a New Bill Capping Interest Rates at 36%
The Sacramento Bee is reporting that California Governor Gavin Newsom has signed into law Assembly Bill 539 that will limit the interest rates charged on loans under $10,000 to 36%; previously lenders could charge as much as 200% on loans between $2,500 and $10,000; consumer groups applauded this new law but said it is not perfect, while it does cap interest rates this only applies to the loan itself and not the extra fees that can drive up loan costs; Governor Newsom said, “Many Californians living paycheck to paycheck are exploited by predatory lending practices each year. Defaulting on high-cost, high-interest rate installment loans push families further into poverty instead of pulling them out. These families deserve better, and this industry must be held to account.”. Source.