AB 539

California Senate to hold June 26 hearing on bill capping consumer loan interest rates

By Ballard CFS Group on June 19, 2019

Posted in Regulatory and Enforcement, Usury

The California Senate’s Banking and Financial Institutions Committee will hold a hearing on AB 539 on June 26, 2019. The hearing was previously scheduled for today.

AB 539 was cleared by the California Assembly on May 23. The bill would change several aspects of the California Financing Law (CFL), including by setting new interest rate caps, imposing new rules governing loan duration, and prohibiting prepayment penalties. … Continue Reading

California Bill Would Cap Some Deregulated Interest Rates And Address Unconscionability Issue

By Ballard CFS Group on February 21, 2019

Posted in Regulatory and Enforcement, State Licensing, State regulation

A bill introduced last week in the California State Assembly could change the consumer lending landscape in California considerably. The bill, AB 539, would change several aspects of the California Financing Law (CFL), including setting new interest rate caps, imposing new rules governing loan duration, and prohibiting prepayment penalties. Additionally, AB 539 would change the CFL to make clear that a loan’s rate cannot be used as the sole factor in determining whether a loan is unconscionable.… Continue Reading