May 9, 2008: Payday Lending Bills Considered in State Capitol

State Assembly Banking and Finance Committee approved the payday lending Assembly Bill 2845, but not before significantly weakening its provisions April 14-15, 2008.

The original bill, co-authored by Assembly members Dave Jones (D-Sacramento), Mike Feuer (D-Los Angeles), and Speaker-Elect Karen Bass (D-Los Angeles), would have capped the interest rate charged by payday lenders at 36% - on par with a law passed by Congress last year which protects military personnel and dependents.

The version that was voted up in committee failed to include any interest cap. Meanwhile, the State Senate Judiciary Committee voted down Senate Bill 1551, introduced by Senator Lou Correa (D-Orange County).

To view Assembly Bill 2845, click below:
Introduced Bill
Amended Bill