Press Statement

UnidosUS Lauds Bipartisan Passage of Bill to Boost Affordable, Fair Access to Credit in California

May 24, 2019

SACRAMENTO, CALIF. –Today, UnidosUS (formerly NCLR), the nation’s largest Hispanic civil rights and advocacy organization, praised the passage of AB 539, a measure introduced by California State Assembly members Monique Limón (D-37) and Tim Grayson (D-14), that would place interest rate caps on consumer loans. Without a rate cap, predatory lenders can charge borrowers between 100 percent and 300 percent APR for loans over $2,500. The bill would put in place an interest rate cap of 36 percent, plus the federal fund rate of 2.5 percent, on consumer loans of $2,500 to $10,000. The bill now goes to the State Senate for consideration.

Several attempts had been made to introduce similar legislation that had failed but through the coordinated efforts of a cross section of advocates and policymakers within the last few years, the measure to stave off predatory lenders gained widespread bipartisan backing.

“This bill is a critical tool in helping to keep thousands of Latino families out of a cycle of debt that has served to enrich the predatory lending industry at the expense of working families. We have worked for several years along with countless faith leaders, veterans, local and state policymakers and stakeholders to come up with a commons sense solution and we commend Assemblywoman Monique Limón for her leadership and unwavering commitment in fighting against predatory lending, and authoring and championing this bill,” said Marisabel Torres, Senior Policy Analyst, UnidosUS.

UnidosUS, previously known as NCLR (National Council of La Raza), is the nation’s largest Hispanic civil rights and advocacy organization. Through its unique combination of expert research, advocacy, programs, and an Affiliate Network of nearly 300 community-based organizations across the United States and Puerto Rico, UnidosUS simultaneously challenges the social, economic, and political barriers that affect Latinos at the national and local levels. For more than 50 years, UnidosUS has united communities and different groups seeking common ground through collaboration, and that share a desire to make our country stronger. For more information on UnidosUS, visit www.unidosus.org or follow us on Facebook and Twitter.

Contact:
Camila Gallardo
news@unidosus.org
(305) 215-4259