Stop the Payday Loan Debt Cycle. Support AB 2558.
Protecting California borrowers from high-interest payday loans by implementing fair rate caps.
High-interest predatory loans are draining wealth from our community. Right now, predatory lenders can charge interest rates that trap California families in a cycle of debt. Assembly Bill 2558 (AB 2558), authored by Assembly Members Berman and Aguiar-Curry, will finally set a fair cap on small loans and payday lending. AB 2558 is a common-sense reform that:
The one and only Dolores Huerta recorded a video to express support:
High-interest predatory loans are draining wealth from our community. Right now, predatory lenders can charge interest rates that trap California families in a cycle of debt. Assembly Bill 2558 (AB 2558), authored by Assembly Members Berman and Aguiar-Curry, will finally set a fair cap on small loans and payday lending. AB 2558 is a common-sense reform that:
- Sets Fair Caps: Implements interest rate limits on loans under $2,500.
- Closes Loopholes: Aligns state protections with the military and 21+ other states.
- Protects Families: Prevents the "debt trap" that keeps families from financial stability.
The one and only Dolores Huerta recorded a video to express support:
Tell the Assembly Banking and Finance Committee to Vote YES!
AB 2558 will be heard on Thursday April 23 in the Assembly Banking and Finance Committee. We are expecting opposition.
Here are ways you can support:
Here are ways you can support:
- April 20-23: Amplify social media posts (#AB2558) on your channels, and add comments about why payday lending should be capped.
- April 23: "Me too" at the hearing
- Attend the hearing in person in Sacramento and join us to give a "me too," which is a short statement of support like this: "Yarissa Ramirez with the Consumer Federation of California and we are in support of this bill."
- Amplify the hearing on social media. Sample posts are ready here.
- Now-Ongoing:
- Tell your friends and other partners about this bill to continue building momentum for the next phase.
- Share your experience with payday loans.
Resources
Here is more information about the legislation and other resources.
With unprecedented federal cuts to food, health care, and affordable housing programs, now is the time to reclaim California household income from payday predators.
Payday lenders hit working class families the most:
Payday lenders hit working class families the most:
What does Stop the Payday Loan Debt Cycle (AB 2558) Do?
Assembly Bill 2558 (AB 2558), jointly authored by Assemblymember Marc Berman and Assembly Majority Leader Cecilia Aguiar-Curry, will finally set a fair price cap on payday lending.
AB 2558 will limit how much payday lenders can charge to no more than 36% interest, compared to the 364% average interest they now charge.
The bill is modeled after the Military Lending Act (MLA) which has bipartisan support and has protected active duty military and their families from predatory lending since 2006 and has been replicated in many of the 21 other states across the country that either ban or cap the cost of payday loans.
The bill will be heard in the Assembly Banking and Financial Services Committee on Thursday, April 23.
AB 2558 will limit how much payday lenders can charge to no more than 36% interest, compared to the 364% average interest they now charge.
The bill is modeled after the Military Lending Act (MLA) which has bipartisan support and has protected active duty military and their families from predatory lending since 2006 and has been replicated in many of the 21 other states across the country that either ban or cap the cost of payday loans.
The bill will be heard in the Assembly Banking and Financial Services Committee on Thursday, April 23.
California must join 21 other states to cap interest rates at 36% to stop the payday income drain cycle.
Join the Campaign!
- Help your clients, union members, and program participants add up how much they’ve paid on payday loans in the past few years. Tell them it is not their fault. It is a sign that California should fix the law to prevent household income drain.
- Help them become a Borrower Advocate by telling their story. Connect them to Andrea Luquetta at Center for Responsible Lending by phone or text at 510-631-9079 or email at [email protected].
- Download resources:
- Join the campaign! Use this link to learn more and sign up.
Interactive Map
Explore a map that shows the number of licensed payday lenders as well as Self-Help Federal Credit Union locations across the state of California.
Copyright © Californians for Economic Justice. All Rights Reserved.