Kalra Introduces “Safe Consumer Lending Act”

So what is AB 2500. AB 2500 provides an opportunity
for families that have fallen victim to predatory lending to have the opportunity to have
the state look out for their interests. California has no shortage of predatory lenders we see
them pop up around the state especially in low income neighborhoods. This is something
with which I am acutely familiar. While on the San Jose city council I authored an ordinance
to limit the number of payday lenders that can operate within the city and prohibited
any new payday lenders from opening and low income neighborhoods. Like a payday lending
these types of lenders offer loans with exorbitantly high interest rates which hurt hard working
families more often than not these loans are taken out by low income working families in
times of financial desperation After my father passed. I needed to to a seek some help in my time in disparity. To the pay rent. Try to go to school. Food on the table. In every
paycheck I got there I was going to 5 different payday loans. All right sucked it up people say you’re
here and it’s your fault you in that position okay. Got a bigger one $2600 installment. Little
did I know that. From my $2600 that I was going to pay $12000. After I I figured that
I had already paid them what I owed them. Started getting the the feelings of the motions
of stress. And at the time I had to default because you know I was gonna lose a job didn’t
have a means of paying these loans so wasn’t my my intention not to but you know after
seeing how predatory they are. I said my health is more important. This is an abuse of practice
and this is why I am proud to introduce assembly bill 2500 the safe consumer lending act this
bill would extend California’s current interest rate structure for consumer loans between
2500 and $10000 putting a stop to the abusive triple digit APR loans. Although consumer
protections already exist for loans under $2500 it makes no sense why they are there are not
any protections for consumers who acquire loans of $2500 and above AB 2500 will change
that. A high cost loan may look like a solution and more often than not a person who’s looking
for immediate access to credit is in financial crisis but these kinds of loans only lead
to long term indebtedness. Looking to make rent to keep the car functioning or cover unexpected
medical bill they want the easiest and most efficient access to credit and are unlikely
to consider the consequences due to the immediate demands of the situation however high cost
loans only provide the financial opportunity to capitalize on people’s misfortunes this
must stop in a few weeks not only will we be memorializing the fiftieth anniversary
of the passing of doctor martin luther king junior but will also be remembering and hopefully
celebrating the poor people’s campaign. And we must remember the poor people’s campaign
was about economic justice and is not good enough for us just just remember it as if
it’s some kind of marker in our history we must honor the poor people’s campaign AB 2500
is one way we can honor the poor people’s campaign to insure that economic justice is
sought for all California families.

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