A new bill designed to protect consumers from predatory lending practices was torn apart in the Assembly Banking and Finance Committee on Monday. Payday lenders charge annual percentage rates of 400 percent, even more, just to borrow a few hundred dollars. President Bush signed into law in 2006 an act limiting the annual percentage rate charged by Payday Lenders to soldiers to 36 percent. Assemblyman Jones quickly offered an amendment to his bill, taking out the 36 percent rate cap and leaving it open to future negotiations. Committee Chairman Peter Nava offered an amendment of his own, adding to the bill 22 recommendations made by the Department of Corporations. The Payday Lender Bill now goes onto the Assembly Appropriations Committee. read more

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