California passes new law to fight predatory lending

California's Governor Newsom today signed into law legislation intended to to protect consumers from predatory lending practices that create debt traps for families already struggling financially. The bill bars payday lenders from charging high interest rates – which in the past have soared as high as 200 percent – on loans between $2,500 and $10,000. (Existing California rate limits applied to loans of $2,500 or less.)

The press release from the California Governor's office is here. National Consumer Law Center's press release applauding the law is here.

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