Friday, August 30, 2019
Latino Leaders: New California state data shows urgent need to stop predatory lending
“Senator Ling Ling Chang’s leadership is paramount to putting an end to predatory lending debt traps.”
SACRAMENTO, CALIF. – Annual data released earlier this month by the California Department of Business Oversight (DBO) shows that predatory, high-cost installment lenders are still siphoning millions of dollars off the backs of working families across the state. Lending data from 2018 shows that 55 percent of loans between $2,500 to $4,999 range carry an annual percentage rate (APR) of 100 percent or more. Currently, there is no rate cap for loans above $2,500, and as DBO’s report shows, predatory lenders are charging borrowers more than 100 percent APR for loans.
Last year, DBO settled with Advance America, Check Into Cash, Quick Cash Funding, for steering California borrowers into loans of $2,501 for the express “purpose of evading” the interest rate caps for loans under that amount.
DBO’s report underscores the need for the State Legislature to set an interest rate cap on consumer loans of $2,500 to $10,000.
Ending predatory lending has support from both political parties in the Senate and Assembly, including Senate Banking Vice Chairperson Senator Ling Ling Chang (R-Diamond Bar) who has stated that, “a 200% interest loan isn’t morally sound - especially when these predatory practices disproportionately impact veterans and vulnerable families.” As a leader in the Senate banking committee, Senator Chang is working with a bipartisan group of legislators to stop predatory lending in the state.”
“For far too long predatory lenders have been targeting Latinx families with outrageous loans of 100% even 200% APR,” said Yvonne Gonzalez Duncan, LULAC California State Director. “These lenders have set up shop in our neighborhoods and aggressively market to Latinx consumers through Spanish-language ads and direct phone calls. We thank Senator Chang for her commitment to protecting vulnerable families from these abusive practices.”
“UnidosUS is encouraged by Senator Ling Ling Chang’s leadership in eradicating the predatory lending practices that have harmed the economic security of Latinos in the state,” said Eric Rodriguez, Vice President of Policy and Advocacy at UnidosUS.
###
Latino Leaders: New California state data shows urgent need to stop predatory lending
“Senator Ling Ling Chang’s leadership is paramount to putting an end to predatory lending debt traps.”
SACRAMENTO, CALIF. – Annual data released earlier this month by the California Department of Business Oversight (DBO) shows that predatory, high-cost installment lenders are still siphoning millions of dollars off the backs of working families across the state. Lending data from 2018 shows that 55 percent of loans between $2,500 to $4,999 range carry an annual percentage rate (APR) of 100 percent or more. Currently, there is no rate cap for loans above $2,500, and as DBO’s report shows, predatory lenders are charging borrowers more than 100 percent APR for loans.
Last year, DBO settled with Advance America, Check Into Cash, Quick Cash Funding, for steering California borrowers into loans of $2,501 for the express “purpose of evading” the interest rate caps for loans under that amount.
DBO’s report underscores the need for the State Legislature to set an interest rate cap on consumer loans of $2,500 to $10,000.
Ending predatory lending has support from both political parties in the Senate and Assembly, including Senate Banking Vice Chairperson Senator Ling Ling Chang (R-Diamond Bar) who has stated that, “a 200% interest loan isn’t morally sound - especially when these predatory practices disproportionately impact veterans and vulnerable families.” As a leader in the Senate banking committee, Senator Chang is working with a bipartisan group of legislators to stop predatory lending in the state.”
“For far too long predatory lenders have been targeting Latinx families with outrageous loans of 100% even 200% APR,” said Yvonne Gonzalez Duncan, LULAC California State Director. “These lenders have set up shop in our neighborhoods and aggressively market to Latinx consumers through Spanish-language ads and direct phone calls. We thank Senator Chang for her commitment to protecting vulnerable families from these abusive practices.”
“UnidosUS is encouraged by Senator Ling Ling Chang’s leadership in eradicating the predatory lending practices that have harmed the economic security of Latinos in the state,” said Eric Rodriguez, Vice President of Policy and Advocacy at UnidosUS.
###
