Press Statement

In Major Blow to Working Families, CA Assembly Sides with Predatory Lenders

June 4, 2018

SACRAMENTO, Calif.—UnidosUS (formerly the National Council of La Raza) laments the California lawmakers’ failure to reign in abusive practices from the payday lending industry through AB 2500, the Safe Consumer Lending Act, a bill introduced by Assembly Member Ash Kalra’s (D-San Jose) to protect California families from abusive high-cost installment loans, including those made by car title lenders. AB 2500, which had robust support from more than 100 California consumer, faith, civil rights organizations and cities, would have provided much-needed protections for California borrowers. The California Assembly voted down the bill 26-29, with 23 members abstaining.

“We regret the outcome of Thursday’s vote and the decision the California Assembly made to propagate the financial abuse of California’s most vulnerable communities. With this vote, California lawmakers took a shameful step to protect unscrupulous lenders, rather than hold them accountable,” said Marisabel Torres, Senior Policy Analyst at UnidosUS.

“We will continue to work with our partners to ensure Californians have access to safe and affordable financial services, and we will continue to educate our legislators to help ensure the economic stability of their communities is guided by smart policy decisions,” concluded Torres.

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 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:
Gabriela Gomez
ggomez@unidosus.org
(202) 776-1732