SACRAMENTO – California Attorney General Xavier Becerra issued the following statement in support of the Consumer Financial Protection Bureau’s (CFPB) Payday Lending Rule, which will prevent the worst harms associated with short-term payday lending:
“I applaud the Consumer Financial Protection Bureau for taking action today to rein in abusive payday loan vendors. Sadly, many of these businesses make money by preying on the most vulnerable – hardworking men and women, families with young children, seniors, and people with disabilities.
“Everyone who works hard for a paycheck deserves the chance to get ahead and basic protections. No one should be trapped in a rigged debt cycle. As a Member of Congress, I supported the Dodd-Frank Act and the CFPB's proposed rulemaking on payday lending. As California's Attorney General, I will do everything in my power to protect this Rule and the CFPB."
Last year alone, according to California’s Department of Business Oversight, borrowers in the state were charged an average annual interest rate of 372 percent on payday loans and paid more than $458 million in fees, with 75 percent of this amount coming from hardworking people who took out seven or more loans.