Earlier today, Assembly Bill 784 was “held” in the suspense file by the Assembly Appropriations Committee,
effectively killing the bill.
Liana Molina, director of community engagement at the California Reinvestment Coalition, released this
“It was deeply disappointing to see AB 784 (Dababneh) held in suspense today by the Assembly Appropriations
Committee. AB 784 called for reasonable interest rate caps to protect California’s working families from
predatory lenders who are currently allowed to charge unlimited interest rates for loans greater than $2,500.
There is a groundswell of support for ending predatory lending, including over 100 community, faith, and civil
rights organizations who support an interest rate cap. We will continue building that support, and educating the
public about the financial heartaches created by these loans.
It’s worth noting the industry spent a great deal of money to oppose this bill, suggesting their profits are far more
important than treating their customers fairly. Reforming predatory lending practices, which disproportionately
harm Californians in communities of color, would be a concrete way for the California legislature to demonstrate
its commitment to building a refuge of justice here in our state.”
Additional Background on Harm of High-Cost Lending
There are no limits the APRs that high-cost lenders can charge Californians for loans that are greater than
In 2015, more than half the loans to Californians for loans of $2,500 to $4,999 came with interest rates of more
than 100% APR, according to the California Department of Business Oversight.
According to research by the CFPB, one out of five car title borrowers will have their cars repossessed.
Over 30 states already have interest rate caps, according to research by the National Consumer Law Center.