On Monday we blogged about AB 377 (Mendoza), which will allow Californians to create a individual check

On Monday we blogged about AB 377 (Mendoza), which will allow Californians to create a individual check

for approximately $500 to secure a pay day loan, up dramatically through the present optimum of $300. A borrower who writes a $500 check to a payday lender would get a $425 loan – which must be repaid in full in just two weeks or so – and pay a $75 fee under this proposed change. That’s a serious payday for payday loan providers. But a lot more than that, a bigger loan size would probably boost the amount of Californians whom become repeat payday-loan borrowers – settling one loan after which straight away taking right out another (and another) simply because they lack adequate income to both repay their initial loan and fulfill their fundamental cost of living for the following fourteen days.

The Senate Banking, Finance and Insurance Committee heard the balance on and things did not go well for the bill’s opponents, who included the Center for Responsible Lending and Consumers Union wednesday. Continue reading On Monday we blogged about AB 377 (Mendoza), which will allow Californians to create a individual check