Federal and State Legislation

CRC BILL WATCH

CRC has been following State Legislation on Payday and Predatory Mortgage Lending and we've found three bills that we would like you to look out for as our campagin against predatory payday and predatory mortgage lending continues.

AB 512
TOPIC:  Contracts: translation
AUTHOR(S):  Lieber and Coto (Principal coauthor: Senator Correa)
DESCRIPTION:  Existing law requires a person in a trade or business who negotiates specified contracts or agreements primarily in the languages of Spanish, Chinese, Tagalog, Vietnamese, and Korean to deliver to the other party prior to execution of the contract or agreement, a translation of the contract or agreement in the applicable foreign language, except as specified. Under existing law, failure to comply with these provisions entitles the aggrieved party to rescind the contract or agreement. Under existing law, these provisions apply to specified loans or extensions of credit subject to the Industrial Loan Law and the California Finance Lenders Law. This bill would provide that these provisions also apply to specified loans or extensions of credit subject to the California
Residential Mortgage Lending Act. The bill would also require supervised financial organizations, as defined, that make loans secured by real property to provide a summary translation of specified contract terms, in a form created by the Secretary of the Business,
Transportation and Housing Agency, to be drafted in each of the languages described above.
STATUS:  Passed out of Assembly, then passed out of Senate Banking Committee. Referred to Senate Judiciary Committee. NEXT HEARING:  7/10/2007

AB 7
TOPIC:  Armed Service members – consumer loans
AUTHOR(S):  Ted Lieu (Chair of Banking & Finance Committee) and Saldana (Co-authors: Beall, Horton, Huff, Jeffries, Laird, and Wolk)
DESCRIPTION:  This bill gives the state authority to enforce the Defense Authorization Act to protect military families from predatory financial services and products, also known as the Talent Nelson Amendment; it limits all forms of credit extended to military personnel and their dependents at 36%.  AB 7 updates California's laws allowing the state of California to ensure that provisions of the Talent Nelson Amendment be enforced to protect military families from predatory payday lenders, car title lenders, etc
STATUS:  Currently in Senate Banking, Finance, and Insurance
NEXT HEARING:  6/20/2007

AB 1534
TOPIC:  Payday Loans:  Department of Corporations report
AUTHOR(S):  Fabian Nunez (Speaker of the Assembly) & Dave Jones
Principal Co-author: Karen Bass
DESCRIPTION:  This bill allows the study that is required from the Department of Corporations on payday lending to include all necessary and relevant information to be included, in order that the Legislature and the Governor receive a comprehensive and in-depth report that accurately reflects the demands, trends, growth, and effects on consumers as a result of payday lending. 
STATUS:  Assembly Appropriations
NEXT HEARING:  Not scheduled