COMMITTEE ON BANKING AND
FINANCE.
.
AT THIS TIME IN A CAR COMMITTEE
TO ORDER AM I FIRST WELL I WANT
TO WELCOME OUR NEW COMMITTEE
SECRETARY WE HAVE A NEW
COMMITTEE SECRETARY HERE WE'RE
LOOKING FORWARD TO WORKING. AND
WITH JEANETTE MOVIES I WAS IT
NEVER SAY WE SAY THE NAME WRONG
AND AND THAT WE'RE LOOKING FOR A
FOR A TO HAVING YOU HERE ON THE
DIET SOME WORKING WITH US AS A
COMMITTEE.
THAT WE DON'T YET HAVE A QUORUM
SO WE WILL STAR AS A
SUBCOMMITTEE. AND AND THEN.
PROCEED AS.
.
PROCEED IN AND THEN ASK FOR
QUORUM ONCE WE HAVE THE OTHERS
HERE.
SO THAT WITH THAT AND WE WE WILL
BE STARTING OFF WITH AB
TWENTY FIVE HUNDRED M. WITH
ASSEMBLY MEMBER KALRA ANY DO YOU
SEE HIM HERE.
ASSEMBLY MEMBER. KALRA.
SO DUE TO THE NUMBER OF
WITNESSES AND TO A COMEDY AND
EVERYONE'S SCHEDULE I WE WILL BE
HEARING CAR IS BILL FIRST I'M
ALSO LIMITING TESTIMONY FOR
WITNESSES IN SUPPORT. AND IN
OPPOSITION ON THIS BILL TO EIGHT
MINUTES FOR EACH SIDE. ON AFTER
ADDITION ADDITIONAL WITNESSES
FOR SUPPORT OPPOSITION CAN GIVE
THEIR NAME ORGANIZATION AND
POSITION ON THE MICROPHONE
PROVIDED BY THE SERGEANT.
AND TO PROVIDE AT THEIR SUPPORT
OR OPPOSITION.
SO.
THANK YOU MISTER KALRA.
YOU GO TO CHURCH MEMBERS.
WITHOUT. A TWENTY FIVE FOR YOU
TODAY.
I WANT TO THANK.
AND.
POP. UP WITH.
ALRIGHT.
THANK YOU MADAM CHAIR AND
MEMBERS FOR THE OPPORTUNITIES
THAT AB TWENTY FIVE HUNDRED
BEFORE YOU TODAY I WANT TO START
BY THANKING OUR CHAIR FOR THE
INCREDIBLE MENTAL WORK IN TIME
ENERGY.
SHE'S PUT IN OB TO LISTENING.
PUT TO DISCUSSING THE ISSUE.
AND FOR ALLOWING THE SPACE FOR
US TO GET WHERE WE ARE TODAY.
I CERTAINLY WANT TO THANK THE
COMMITTEE STAFF UP PUTTING A
TREMENDOUS AMOUNT OF WORK AND
INTO.
THE INTO THE UP TODAY AND TO
COME TO THIS MOMENT AS WELL AS
REPUBLICAN. AKAKA STAFF AS WELL
THOUGH I KNOW IT'S BEEN A LOT OF
TIME IN DISCUSSING THE MATTER
WITH MY STAFF.
A I KNOW IT HAS BEEN EASY AND
ONE EXPRESS MY APPRECIATION FOR
ALL OF YOUR WORK ON THIS
PARTICULAR BILL.
I AND I WANT TO THANK MEMBERS OF
THE COMMITTEE FOR THEIR TIME AND
FEEDBACK IT'S BEEN INCREDIBLY
VALUABLE. TO HEAR FROM NOT JUST
THE CHAIR BUT FROM ALL COMMITTEE
MEMBERS.
BOB THE OF BEFORE GETTING TO THE
SERB TO THIS HEARING.
IN RESPONSE TO THE TO THIS
FEEDBACK
AND YOUR TIME I'LL COMMIT.
UP AT THIS TIME TO REMOVING THE
RATE CAP OF LOANS BETWEEN FIVE
AND TEN THOUSAND DOLLARS LOOK AT
OTHER WAYS WE CAN WORK TO HELP
PROTECT BARS. IN THIS LOAN
RANGE.
THIRTY FIVE YEARS AGO THIS
LEGISLATURE IN AN EFFORT.
TO BRING DOWN INTEREST RATES FOR
INDIVIDUAL CONSUMER LOANS PASS
EXCESSIVE MEASURES TO ELIMINATE
THE INTEREST RATE CAPS FOR
LOANS.
OF BETWEEN TEN AND BY THOUSAND
AND THEN AGAIN FOR LOANS BETWEEN
FIVE AND TWENTY FOUR BY THOUSAND
TWENTY FIVE HUNDRED.
THE DOCUMENT ARGUMENT AT THE
TIME WAS THAT ELIMINATING THE
RATE CAP ALLOW BASE TO BE SEC
COMPETITIVELY IN THE
MARKETPLACE.
THUS BY INCREASING COMPETITION
IT WOULD LOWER RATES HOWEVER
ALTHOUGH WE HAVE SEEN
COMPETITION INCREASE OF THE LAST
TWO DECADES. WE HAVE NOT SEEN A
DECREASE IN RATES
RATHER WE HAVE WATCHED RATE
SKYROCKET WHERE MANY LENDERS NOW
ISSUE LOANS INTEREST RATES
ANYWHERE FROM ONE HUNDRED
PERCENT. TO AS HIGH AS THREE
HUNDRED PERCENT.
IN FACT ACCORDING TO THE CALVET
DEPARTMENT OF BUSINESS OVERSIGHT
NEARLY SIXTY PERCENT.
INSTALLMENT LOANS
A TWENTY FIVE HUNDRED
TO FIVE THOUSAND DOLLARS HAD
APRS OF A HUNDRED PERCENT OR
HIGHER.
THESE ARE UNCONSCIONABLE
INTEREST RATES
THAT PLACE SERIOUS AND
DEBILITATING IMPACTS ON ECONOMIC
SECURITY AND CREDIT OF LOW
INCOME COMMUNITIES.
DEFAULT RATES ARE CALMLY AS HIGH
AS FORTY PERCENT AS TO WHETHER
EVERY FIVE LOANS.
THIS IS NOT ACCESS TO CREDIT
THIS IS ACCESS
TO UNMANAGEABLE DEBT AND
DESTROYED. POTENTIAL FOR CREDIT.
THIS IS WHY I'M BOTHERING AB
TWENTY FIVE HUNDRED.
AB TWENTY FIVE HUNDRED REINSTATE
THE REGULATORY FRAMEWORK UNDER
THE CALIFORNIA FINANCING LAW. TO
WHICH APPLIED OF HIGH DOLLAR
CONSUMER LOANS TO TWENTY FIVE
HUNDRED AND FIVE THOUSAND
DOLLARS.
BASICALLY IT WOULD ESTABLISH A.
THIRTY SIX PERCENT RATE CAP
PROLONGS BETWEEN TWENTY FIVE
HUNDRED AND FIVE THOUSAND
DOLLARS A THIRTY SIX PERCENT.
AND PUT IN PLACE NEW CONSUMER
PROTECTIONS FOR THESE LOANS.
SUCH AS MS MALONE TERMS AND
INCREASE ACCESS TO FINANCIAL
LITERACY COUNSELING SERVICES.
THIS MEASURE ALSO ALLOWS EFFORTS
THAT HAVE PURSUED NOT JUST
ANOTHER STATES BUT NATIONALLY.
CURRENTLY TWENTY ONE OTHER
STATES HAVE SIMILAR RATE CAPS
FOR CONSUMER LENDING OF THIS
KIND MANY WITH A THIRTY SIX
PERCENT RATE CAP.
EVEN MORE SIGNIFICANTLY IT TWO
THOUSAND SIX THE U. S. CONGRESS
PASSED THE MILITARY LENDING ACT
RESPONSE TO THIS VERY ISSUE.
UNDER THE MLA IN ADDITION TO
MANY OTHER SIGNIFICANT CONSUMER
PROTECTIONS
IT PROHIBITS ACTIVE DUTY SERVICE
MEMBERS FROM BEING CHARGED AN
INTEREST RATE HIGHER THAN THIRTY
SIX PERCENT.
THAT APPLIES NOT JUST TO
INSTALLMENT LOANS AND OTHER
TITLE IT ALSO APPLIES.
IT ALSO APPLIED ALL PAYDAY LOANS
DEPOSITED BANDS LOANS UNSECURED
OPEN AND LINES OF CREDIT AND
CREDIT CARDS.
IN OUR CASE BY REINSTITUTING A
RATE STRUCTURE FOR THESE.
HIGH DOLLAR LOANS SIMILAR TO
OTHER STATES AND THE FEDERAL
GOVERNMENT HAVE ALREADY ADOPTED.
WE CAN BEGIN TO TAKE THE
NECESSARY STEPS OF IMPLEMENTING
SOUND FINANCE PROTECTIONS FOR
CONSUMERS WHO NEED ALONE WHEN
BASIS STRESSFUL FINANCIAL
CIRCUMSTANCE.
WE ABSOLUTELY WANT TO CONTINUE
TO PROVIDE ACCESS TO CREDIT.
WE MUST DO IN A WAY THAT'S
RESPONSIBLE I THAT ACTUALLY
HELPS TO LIFT CALIFORNIA
FAMILIES OUT OF POVERTY. NOT HOW
THE DOWNWARD SPIRAL OF FURTHER
INTO POVERTY.
I'M HAPPY TO ANSWER ANY
QUESTIONS MAKE YOU MAY HAVE
RESPECTFULLY ASK FOR MY BOAT AND
WE DO AS THE CHAIRED INDICATED
HYPED. UP BUT WITNESSES THAT
WILL BE SPEAKING UP FOR THE NEXT
EIGHT MINUTES ON THIS ISSUE.
THANK YOU AND AT WE DO YOU HAVE
QUORUM SO AS.
THIS
SUPPORTERS I COME FORWARD AND
LIKE TO ASK A HOME OUR SECRETARY
TO PLEASE.
CALL THE ROLL.
LEóN.
CHEN.
ACOSTA.
HERE PLASTIC HERE.
BURKE.
CALDERON.
CALDERON HERE.
CERVANTES.
CHOI THEIR
CHOI HERE.
GONZALEZ FLETCHER.
SOUTH FLETCHER HERE.
GRAYSON.
RECENT HERE STONE.
WEBER.
I THINK IF.
ALRIGHT WE WILL HEAR FROM THOSE
IN SUPPORT AND CARE AFTERNOON MY
NAME.
FOR YOU POLICY FOR THE CENTER
FOR RESPONSIBLE LENDING STERILE
IS A NONPROFIT RESEARCH AND
ADVOCACY ORGANIZATION DEDICATED
TO PROTECTING HOMEOWNERSHIP IN
FAMILY WEALTH BY FIGHTING
PREDATORY LENDING PRACTICES.
I MYSELF I SPENT TWO DECADES
FIGHTING FOR LOW INCOME FAMILIES
GREW UP IN A LOW INCOME.
FAMILY SINGLE MOM TRYING TO
MAKE MAKE ENDS MEET AND LUCKILY
I WASN'T.
WE WANT A TARGET OF THESE
PREDATORY LOANS BECAUSE THEY'RE
OUTLAWED IN OUR STATE IN FACT
FIFTEEN STATES PLUS TO TO
DISTRICT OF COLUMBIA DO NOT
ALLOW HIGH COST LOANS. ARE THAT
WE HAVE HERE IN CALIFORNIA SOUTH
DAKOTA WAS THE LATEST STATE TO
CAP A P. OURS AT THIRTY SIX
pINITIATIVE IN THEIR THIRTY FOUR
STATES I HAVE A THIRTY SIX
PERCENT CAP ON LOANS OF TWO
THOUSAND DOLLARS. I'M SORRY YES
OF TWO THOUSAND CALIFORNIA HAS
FALLEN BEHIND IN TWO THOUSAND
SIX CONGRESS IMPLEMENTED A
THIRTY SIX PERCENT RATE CAP ON
PAYDAY LOANS FOR ACTIVE DUTY
MILITARY SERVICE MEMBERS AND
THEIR FAMILIES. CONGRESS TOOK
THIS ACTION ON A BIPARTISAN
BASIS AFTER THE DEPARTMENT OF
DEFENSE DETERMINE THAT PAYDAY
LOANS WERE HARMING. OUR MEN AND
WOMEN IN UNIFORM.
AND TWENTY FIFTEEN OF THE
EXPANDED THE RULES TO COVER
LONGER TERM LOANS AND ENSURE
THAT THE EPR CALCULATION
INCLUDES ALL LOAN COSTS
INCLUDING CREDIT INSURANCE
PREMIUMS AND OTHER FEES.
UP HERE CALIFORNIA THERE ARE
MORE PAYDAY LENDING STORES THAN
MCDONALD'S THESE ONE STOP SHOPS
OFFER PAYDAY LOANS CAR TITLE
LOANS AND HIGH COST INSTALLMENT
LOANS THERE'S BEEN A HUGE SHIFT
FROM PAYDAY. TO THE HIGHER COST
LOANS IS WHAT WE'RE SEEING HERE
IN CALIFORNIA. OF THE IT THESE
STORES ARE DISPROPORTIONATELY
LOCATED IN LATINO AND AFRICAN
AMERICAN NEIGHBORHOODS THIS IS
ACCORDING TO WHAT TWENTY SIXTEEN
DB ó REPORT THAT SHOWS UP EVEN
WHEN ANNA FACTORING INCOME.
AB TWENTY FIVE HUNDRED WILL
PROTECT CONSUMERS FROM ABUSIVE
HIGH COST LOANS OUR GOAL IS TO
PROTECT THEM FROM THESE TRIPLE
DIGIT AP ARE LOANS.
.
AS MUCH AS WELL WANT TO
SAFEGUARD ACCESS TO CREDIT FOR
THESE LOANS THESE LOANS DESTROY
CREDIT THE CREDIT SCORE A FOR OF
FAMILIES AS THEY WANT TO GO BUY
A NEW CAR BUY A NEW HOUSE. THEY
WILL BE STUCK IN THE SUBPRIME
LOANS BECAUSE OF WHAT THESE
LOANS ARE DOING TO THEM.
AND I'M GOING TO YIELD MY TIME
TO THE NEXT SPEAKER.
THANK YOU.
CHAIRPERSON ASSEMBLY MEMBERS MY
NAME IS JACOB DEMAND TESTIFYING
TODAY IN SUPPORT OF AB TWENTY
FIVE HUNDRED ON BEHALF.
THE SAN FRANCISCO OFFICE OF
FINANCIAL EMPOWERMENT PART OF
THE CITY AND COUNTY OF SAN
FRANCISCO. THE OFFICE OF
FINANCIAL EMPOWERMENT LED BY
TREASURE JOSE CISNEROS LEVERAGES
THE POWER CITY HALL TO
STRENGTHEN ECONOMIC SECURITY AND
MOBILITY FOR LOW INCOME
FAMILIES.
WE'VE LAUNCH PIONEERING PROGRAMS
TO INCREASE FINANCIAL WELL
BEING.
AND THROUGH FINANCIAL COACHING
AND OTHER INITIATIVES
I'VE SEEN FIRSTHAND THE
DEVASTATING IMPACTS THE
PREDATORY LENDING CAN HAVE ON
OUR RESIDENTS.
MANY OTHER CITIES ACROSS THE
STATE IN THE COUNTRY HAVE
UNDERSTOOD EXPERIENCE THE
HARMFUL IMPACT HIGH COST
CONSUMER LOANS.
TREASURER CRISIS NERIS COE
CHAIRS THE CITY'S FOR FINANCIAL
EMPOWERMENT COALITION.
A GROUP OF FIFTEEN MEMBER CITIES
REPRESENTING ALMOST TWENTY TWO
MILLION PEOPLE INCLUDING SAN
FRANCISCO AND LOS ANGELES.
OUR MEMBERS ARE UNITED IN
CALLING FOR STRONGER CONSUMER
LENDING PROTECTIONS.
OUR OFFICE HAS WORKED FOR MORE
THAN TEN YEARS WITH LOCAL AND
STATE LENDERS TO STATE LEADERS.
EXCUSE ME TO COMBAT HARMFUL
CONSUMER LOANS.
FOR EXAMPLE BY ENACTING ITS OWN
ZONING ORDINANCE IN TWO THOUSAND
SEVEN TO RESTRICT PAYDAY AND
FRENCH FINANCIAL USE.
AND BY WORKING WITH THE STATE
LEGISLATURE ON THEIR PILOT
PROGRAM FOR SMALL DOLLAR
LENDING.
MANY OTHER CALIFORNIA CITIES
HAVE TAKEN SIMILAR STEPS TO
OPPOSE PAYDAY AND OTHER.
INSTALLMENT LENDING HOWEVER
THERE CRUCIAL LIMITS TO OUR
LOCAL AUTHORITY AND WE NEED THE
LEGISLATORS HAVE LEGISLATURE'S
HELP. I WILL NOTE WITH THE A
CURRENT ADMINISTRATION'S EFFORT
TO DISMANTLE THE CFPB AND
ROLLBACK CONSUMER PROTECTIONS
NATIONALLY THAT IS EVEN MORE
CRUCIAL.
RESEARCH HAS DEMONSTRATED THAT
ALL OF THE LARGEST PAYDAY
LENDERS NOW OFFER INSTALLMENT
LOANS IN ADDITION TO
CONVENTIONAL PAYDAY LOANS AND
THE SHIFT HAS BEEN WIDESPREAD
WITH PAYDAY OR AUTO TITLE
LENDERS. ISSUING SUCH LOANS ARE
LINES OF CREDIT IN TWENTY SIX OF
THE THIRTY NINE STATES WHERE
THEY OPERATE.
WE'RE ASKING THIS COMMITTEE IN
THE LEGISLATURE TO STEP UP.
AND IMPOSE MUCH NEEDED INTEREST
RATE CAPS AND CONSUMER
PROTECTIONS SO THAT OUR
RESIDENTS CAN AVOID THE POISON
PILL OF HIGH COST INSTALLMENT
LOANS.
RESULTING IN YEARS OF DID
DEBILITATING DEBT PLEASE JOIN US
AND SUPPORT AB TWENTY FIVE.
THANK YOU MADAM CHAIR AND
MEMBERS OF THE COMMITTEE I'M AS
OUR GARRETT WITH OPPORTUNE WE
ARE A COMMUNITY DEVELOPMENT
FINANCIAL INSTITUTION WHICH IS A
U. S. TREASURY CERTIFICATION.
FOR LENDERS THAT DO THEIR LOANS
WITH THE MISSION FOCUS.
A OUR MISSION IS FOCUSED ON
FAMILIES WITH LITTLE OR NO
CREDIT WE'RE ONE OF THE MOST
ACTIVE LENDERS HERE IN
CALIFORNIA.
BOTH WITHIN THE CFL ANA INTO IN
THE LOAN SIZE THAT WE'RE
DISCUSSING TODAY BUT ALSO IN THE
CALIFORNIA PILOT PROGRAM FOR
RESPONSIBLE ACCESS TO TO CREDIT.
I'M OUR LAWS HAVE HELPED OUT
OVER HALF A MILLION
CALIFORNIA'S.
ESTABLISHED EFFORTS CREDIT SCORE
NINETY PERCENT OF OUR THE
FAMILIES WE SERVE LIVE IN ALLEN
MY COMMUNITIES AND UP FOR THE
MOST PART ARM. OF THIS.
BILL AS PROPOSED AND CURRENTLY
AMENDED UP ALLIANCE WITH THE
MONEY THAT WE DO AND CAN USE
THAT WE SERVE. OF ONE APPLIED
MISTER KALRA AND THAT THE
SPONSORS FOR THEIR LEADERSHIP ON
THIS ISSUE.
AND THANK THEM FOR THEIR ENGAGE
WITH US AS WE'VE BEEN WORKING
THROUGH THE DETAILS OVER LARGE
THE THERE THERE IS SOME
IMPROVEMENTS ON THE MARGINS.
FOR THE MOST PART AGAIN THIS IS
A BILL A THAT WE FEEL
COMFORTABLE WITH AND WE
APPRECIATE YOUR TIME THANK YOU.
CHAIR AND MEMBERS HIS AND MARTIN
DEL WITH CONSUMERS UNION OF
RESEARCH AND ADVOCACY
ORGANIZATION THAT TRIES TO
PROMOTE FAIRNESS IN THE
MARKETPLACE.
YOU KNOW WE HAVE LONG BEEN IN
STRONG SUPPORT OF EFFORTS LIKE
THESE TO PROVIDE SENSIBLE RULES
OF THE ROAD SO THAT RESPONSIBLE
LENDERS CAN FLOURISH AND THE
IRRESPONSIBLE FOLKS CAN GO HOME.
I CALIFORNIA AS A GRACILIS SAID
HAS REALLY FALLING BEHIND OF
MANY OTHER STATES HAVE MOVED
FORWARD IN OF RECOGNIZED THAT A
BUSINESS MODEL THAT DEPENDS ON.
TRIPLE DIGIT RATES AND A BUNCH
OF PEOPLE DEFAULTING TO MAKE A
PROFIT IS NOT A JUSTIFIABLE
BUSINESS MODEL AND IF YOU LOOK
AT THE DEAL THE DATA.
THAT WE HAVE FROM THE
DEPARTMENT OF BUSINESS OVERSIGHT
OR WE HAVE SOME WONDERS THAT.
TRY TO CAP THEMSELVES AND YOU
TRY TO CHARGE RESPONSIBLE RATES
VERSUS THOSE WHO DON'T THE
DEFAULT RATES ARE WAY LOWER HOW
THE FOLKS WHO ARE MAKE TOUR
DOING RESPONSIBLE ONE DAY. SO I
YOU KNOW I THINK THE IN AN ART
CONVERSATIONS WITH MANY OF YOU
I'M ON THIS COMMITTEE A ONE
THING I THINK WE CAN SAY.
IN GENERAL IS THAT EVERYONE
AGREES WE HAVE A PROBLEM THAT WE
HAVE A PROBLEM IT'S A PUBLIC
POLICY PROBLEM IN A MARKET
FAILURE THAT WE NEED TO FIX. SO
I URGE YOU ALL TO DO WHAT
PREVIOUS COMMITTEES IN PREVIOUS
YEARS IN PREVIOUS SESSIONS HAVE
NOT HAD THE COURAGE TO DO WHICH
IS TO REALLY TACKLE THIS ISSUE.
SO WE'RE IN VERY STRONG
SUPPORTER THIS MEASURE AND WE
REALLY ARE WE URGE YOU TO WHAT
ADVANCE OUT OF COMMITTEE TODAY.
AND WOULD LIKE TO WORK WITH EACH
AND EVERYONE OF YOU TO ENSURE
THAT WE ARE SETTING STRONG RULES
OF THE ROAD HERE IN CALIFORNIA
FOR LARGER INSTALLMENT LOANS
THAT. RESPONSIBLE LENDING AND
GETTING RID OF A RESPONSIBLE ONE
IN THAT ASSEMBLY PUTTING PEOPLE
INTO UNMANAGEABLE DOES THE CAN
ACTUALLY MAKE THEM WORSE OFF
THANK YOU VERY MUCH.
THE GRIP JUST A COUPLE MORE
SECONDS JUSTIN.
THE OTHER SPONSORS AS WELL JUST
ONE OF THE.
AFRICAN METHODIST OF EPISCOPAL
CHURCH OF THE FIFTH DISTRICT OF
WHO NEED THOSE US IS THE FORMER
NATIONAL COUNCIL OF LA RAZA
ASIAN LAW CAUCUS ARM AND WESTERN
CENTER ON LAW AND POVERTY ARE
ALSO. SPONSORS OF THIS BILL AND
WE WERE ABLE A THEY WERE
ACTUALLY NINETY NINE GROUPS IN
SUPPORT OF THE BILL.
SHORT OF ONE FOR ONE HUNDRED
AND THE I THINK FIVE OR SIX
CITIES SO I HOPE YOU GUYS SAW
THAT LIST OF OF SUPPORT AS WELL
SO THANK YOU.
GREAT THANK YOU I'M ANY
ADDITIONAL WITNESSES IN SUPPORT.
AND JUST AS A REMINDER. JUST
YOUR NAME ORGANIZATION. AND
POSITION ON THE MICROPHONE
PLEASE.
MARY JANE FOR IS ON BEHALF OF
HEALTH ACT AS CALIFORNIA THE
STATE WIDE HEALTH CARE CONSUMER
ADVOCACY COALITION IN STRONG
SUPPORT.
HI SABRINA HAM WITH THE
CALIFORNIA ASSET BUILDING
COALITION IN CHUNKS SUPPORT.
HI RONALD COLMAN HERE WE HAVE
THE CALIFORNIA LOW INCOME
CONSUMER COALITION CLICK AUTHOR
HERE IN VERY STRONG SUPPORT
THANK YOU.
GOOD AFTERNOON MICHAEL
MCLAUGHLIN VOLUNTEER WITH AARP
AARP.
SUPPORTS AB TWENTY FIVE HUNDRED.
KEVIN ANDERSON ON BEHALF THE
SILICON VALLEY COMMUNITY
FOUNDATION IN SUPPORT.
MICHAEL RIGHT AGAIN ON BEHALF
OF THE BOARD OF SUPERVISORS
SANTA CLARA COUNTY IN SPORTS.
MICHAEL YOUNG THE BACK THE
CALIFORNIA LABOR FEDERATION ALSO
HERE IN SUPPORT.
EVIDENTLY MENTEN WITH VOICES FOR
PROGRESS LAWYER ADDED HUNDREDS
OF BUSINESS LEADERS
ENTREPRENEURS INVESTORS
PHILANTHROPISTS. OUR MEMBERS ARE
EASILY TARGETED BY PREDATORY
LENDERS THAT WE STAND WITH THOSE
WHO ARE AND WE ARE IN STRONG
SUPPORT OF THIS BILL.
OF MIKE MONTGOMERY WITH THE
CONGRESS OF CALIFORNIA SENIORS
WE SUPPORT BILL ALSO.
THANK YOU.
NOW I'D LIKE TO ASK OUR
WITNESSES IN OPPOSITION TO
PLEASE COME TO. DIET
.
UNDER STERN MANNER WILL TAKE IT
UP TO HEAR. FROM THE THREE OF
YOU.
GOOD AFTERNOON THANK YOU MADAM
CHAIR OF MY NAME IS DAN
GWALTNEY.
I AM THE CEO PAY MONEY CENTERS
AS WELL AS ON THE PRESIDENT THE
CALIFORNIA FINANCIAL SERVICE
PROVIDERS. I'M I ALSO AND I
THINK THE COMMITTEE MEMBERS AND
SPECIFICALLY THE STAFF OF THE
COMMITTEE. OF AND THE TWO
GENTLEMEN HAVE DONE A LOT OF
EFFORT THEY'VE OPENED OUR DOORS
WE'VE HAD. NO PROBABLY OVER
TWELVE MEETINGS ARE SO TO TRY TO
BETTER INFORM THE FORM THE
COMMITTEE TO MAKE SURE WE'RE
MAKING POLICY DECISIONS BASED ON
DATA. AND THAT'S WHAT'S CRITICAL
TO US AT THIS TIME UNFORTUNATELY
WE ARE IN OPPOSITION TO THIS
BILL. AND I'M GONNA GIVE YOU
SEVERAL REASONS WHY THAT IS TRUE
THIS IS COMPLEX ISSUE.
UNFORTUNATELY I THINK THAT.
THE DATA THAT'S BEEN PROVIDED
TO THE COMMITTEE REALLY OF WHAT
WE HEARD IS COMING OUT OF ANNUAL
REPORTS.
UP FROM THE DEPARTMENT THIS
OVERSIGHT ALTHOUGH SOMEWHAT
HELPFUL THERE SOME DATA THAT'S
MISSING FROM THOSE REPORTS AND
WE BELIEVE THAT THIS IS THIS
REQUIRES RIGOROUS. SOME ACADEMIC
ANALYSIS THAT.
WHAT WE HEARD TODAY FROM THOSE
THAT ARE IN SUPPORT OF THE BILL
I DIDN'T HEAR A WHOLE LOT ABOUT
WHERE THE CONSUMERS ARE GONNA
KILL? ONCE THERE IS A RATE CAP
WE APPRECIATE THE AUTHOR
REMOVING RESTRICTIONS OVER FIVE
THOUSAND THAT WERE STILL WE'RE
STILL BUT TWENTY TO MY MATH.
UNDER FIVE THOUSAND WERE STILL
LOOKING AT OVER SIXTY PERCENT OF
THOSE AND IN THAT LONE CATEGORY
WOULD NOT BE ABLE TO. GET A LOAN
UNDER THIS CURRENT BILL
STRUCTURE.
THOSE RATE CAPS WHAT WE'VE SEEN
IN OTHER STATES.
WE ASK WHAT HAPPENS TO THESE
WHEN THE STATE'S PUT IN A THIRTY
SIX PERCENT. RATE CAP WE CAN
LOOK AT MULTIPLE STATES THAT
HAVE DONE THIS GEORGIA NORTH
CAROLINA REPORT DEBT COLLECTION
COMPLAINTS GO UP CHAPTER SEVEN
BK'S GO UP. CLUB AND BOUNCED
CHECKS GO UP AFTER THE REMOVAL
OF THESE OPTIONS MONTANA SAME
THING THEY HAD THEIR REPORTING
UNREGULATED LOANS IT OVER HER A
THOUSAND PERCENT. OF WENT UP AND
THERE'S ONLY A HUNDRED FIFTY US
STOREFRONTS THERE'S ONLY EIGHT
REMAINING AFTER EIGHTEEN
REMAINING OREGON SAME THING
COMPLAINTS ONLINE UNREGULATED.
ONLINE LENDING A DOUBLED OF THE
DISTRICT COLUMBIA.
UNDER A UNREGULATED UNLICENSED
LENDERS WERE DEAFENING PEOPLE'S
BANK ACCOUNTS THEY WERE CHARGING
OVER TWO THOUSAND PERCENT IN THE
ABSENCE OF TRADITIONAL UP.
REGULATED LENDERS AND MOST
RECENTLY WE HEARD ABOUT SOUTH
DAKOTA WILL WHAT HAPPENED AFTER
THAT RATE CAPS PUT IN PLACE
PEOPLE WERE NOT ABLE TO GET
LOANS ANYMORE. SIXTY TWO HUNDRED
SIXTY TWO LENDERS SHUT DOWN ONLY
LEAVING A HALF A DOZEN OR ON THE
GO TWENTY FOUR LENDERS STILL
REMAIN. HOWEVER THE CREDIT
UNIONS WHICH IS EVERYBODY
EXPECTS WILL STEP UP THEY DIDN'T
THEY DIDN'T SEE ANY INFLUX OF
NEW BORROWERS. BUT IN FACT THE
THAT THE PROPONENTS OF THE
THIRTY SIX PERCENT RATE CAP IN
SOUTH DAKOTA SET UP A SPECIAL
FUND OF TWENTY FIVE THOUSAND
DOLLARS TO DO WITH THIS. THEM
DANCING ALONE OUT OF IT
CONSUMERS OF THE CREDIT
COUNSELORS HAVE REPORTED THAT
THERE ARE MORE COMPLAINT OR THAT
THE NUMBER OF COMPLAINTS ABOUT
CREDIT PROBLEMS DIDN'T GO DOWN
WHEN THE RATE RESTRICTIONS PUT
IN PLACE.
SO WHAT IS THAT SAYING THAT
SAYING THAT THIS DOES ELIMINATE
CREDIT THOSE CUSTOMERS THAT
DON'T HAVE TWO HUNDRED THOUSAND
LOANS. BUT
WE'RE TALKING THAT THERE'S A LOT
OF CONSUMERS THAT NEED HELP
BETWEEN TWENTY FIVE HUNDRED AND
FIVE THOUSAND AND THE END
REPORTS FROM THE DEPARTMENT. I'M
SURE YOU GUYS READ IT IT DOESN'T
SAY HOW MANY CUSTOMERS THERE
ARE.
AND I THINK THAT WE NEED TO
COULD GATHER MORE DATA SO UP OR
TRADE ASSOCIATION AND I AS A
MATTER WOULD ALSO ASK YOU TO
VOTE NO. WHEN YOU SLOW DOWN AND
ANALYZE THIS BEFORE WE MOVE IT
FORWARD THANK YOU.
THANK YOU MADAM CHAIR OF
COMMITTEE MEMBERS JOINT
COMMITTEE PRESIDENT CEO OF THE
CALIFORNIA SPENT CHAMBERS OF
COMMERCE.
HAD IN OPPOSITION OF AB TWENTY
FIVE HUNDRED OTHER CHEC. THROUGH
OUR NETWORK OF FIFTY FIVE
CHAMBERS THROUGHOUT THE STATE
REPRESENTS THE INTERESTS
OF THE OVER EIGHT HUNDRED
THOUSAND HISPANIC BUSINESSES
HERE IN CALIFORNIA.
OUR ISSUE HERE IS IS THAT
CALIFORNIA'S WHO ARE NOT ARE NOT
CONSIDERED NON PRIME AND. WHICH
INCLUDES MANY OF OUR SMALL
BUSINESSES SO PROPRIETORS
NEED AND DESERVE ACCESS TO
CREDIT.
JUST LIKE PINE CALIFORNIANS DO
MANY TRADITIONAL THE TRADITIONAL
LENDING INSTITUTIONS EITHER
CANNOT OR OR OR WILL NOT SERVE
THESE CONSUMERS.
MANY CALIFORNIANS STRUGGLE
STRUGGLE TO GET A CREDIT ACCESS
THROUGH TRADITIONAL BANK BECAUSE
THEY DON'T HAVE PRIME CREDIT
SCORE AND MANY BANKS DON'T MAKE
LOANS BELOW THE TEN THOUSAND
DOLLARS SPECIAL.
.
RESTRICTING THESE CALIFORNIANS
ACCESS TO CREDIT DOES NOTHING TO
ADDRESS THEIR UNDERLYING NEED
FOR CREDIT JUST MAKES IT HARDER
FOR THEM TO GET A LOAN WHEN THEY
FACE UNEXPECTED EXPENSES.
ONE OF OUR TOP PRIORITIES AND
ENSURE THAT ALL CONSUMERS HAVE
ACCESS TO SAFE.
RELIABLE CREDIT OPTIONS
A WHEN THEY NEED IT
I LEGISLATION SUCH AS AB TWENTY
FIVE HUNDRED AND OTHER.
BOB
BILLS THAT YOU'LL BE HEARING A
LOT LATER WOULD ELIMINATE
LEGITIMATE REGULATED SHORT TERM
CREDIT WITHOUT VIABLE
ALTERNATIVES.
THESE HURT RATHER THAN HELP OUR
CONSUMERS AND SMALL BUSINESS
SOLE PROPRIETORS.
INSTEAD CALIFORNIA SHOULD FOCUS
ON PROTECTING CONSUMERS ACCESS
TO A RANGE
OF SAFE
CONVENIENT LICENSE ALONE
OPTIONS.
ENSURING THAT CONSUMERS COULD
PAY BACK THERE ARE THEIR LOANS
IS NOT ONLY THE RIGHT THING TO
DO. IT IS ALSO GOOD FOR BUSINESS
BUT ATTEMPTING TO ACHIEVE THIS
GOAL THROUGH RATE CAPS AND OTHER
ARTIFICIAL WAVES OF RESTRICTING
SMALL DOLLAR LENDING ONLY SERVES
TO PUSH RESPONSIBLE. LICENSE
COMPANIES OUT OF THE MARKET
WHILE DOING NOTHING TO ADDRESS
CONSUMERS UNDERLYING NEED FOR
CREDIT WITHOUT ACCESS TO SAFE
RELIABLE CREDIT OPTIONS BORROWS
MAY BE FORCED.
RETURN TO TILLY ILLEGAL OFFSHORE
LENDERS
TO GET THE MONEY THEY NEED.
WE URGE LEGISLATORS THE FOCUS ON
COMMONSENSE REGULATIONS THAT
PROTECT CONSUMERS AND ELIMINATE
BAD ACTORS
WHILE STILL PRESERVING ACCESS TO
CREDIT PERJURED OPEN.
THANK YOU MADAM CHAIR AND
MEMBERS I APPRECIATE YOU
ALLOWING ME TO ADDRESS THE
COMMITTEE TODAY.
MY NAME IS MELISSA SOBRE OF WITH
CARAVAN CHILL TECHNOLOGIES WE
OPERATE IN THREE COUNTRIES BOTH
IN STORE AND ONLINE.
WE'VE BEEN OPERATING FOR TWENTY
YEARS IN FACT OUR FIRST STORE
WAS RIGHT HERE IN RIVERSIDE
CALIFORNIA.
OUR OPERATIONS HERE IN
CALIFORNIA INCLUDE THIRTY SIX
SPEED CASH STORES SPEEDY CASH
ONLINE IN A VIA CREDIT.
LAST YEAR.
WE ORIGINATED MORE THAN SIX
HUNDRED MILLION AND CONSUMER
LOANS IN CALIFORNIA.
IF AB WORDPAD AB TWENTY FIVE
HUNDRED WERE TO PASS WE WOULD
IMMEDIATELY CEASE OFFERING LOANS
ABOUT TWENTY FIVE HUNDRED IN
CALIFORNIA IMMEDIATELY.
PROVIDING CREDITS NAM PRIME
CONSUMERS WITHIN OR IMPAIRED
CREDIT FILES IS EXPENSIVE TO DO
AND I KNOW YOU'VE ALL HEARD THIS
AND IT'S HARD TO. ON WITH TRULY
COMPREHEND THE COMPLEXITY
SALEMME JUST SHARE A FEW DATA
POINTS ABOUT OUR BUSINESS.
WE HAVE A PROPRIETARY SCHOOL
CREDIT SCORING MODEL THAT HAS
BEEN BUILT USING DATA FROM OVER
SEVENTY FIVE MILLION COMPLETED
APPLICATIONS IN OVER A LOT
ELEVEN THOUSAND DEED OF ARAB
BILLS.
WE PURCHASE DATA FROM AT LEAST
FIFTEEN DIFFERENT SUB PRIME
SPECIALTY BUREAUS IN INTEGRATED
WITH OUR DISCREDIT SCORING CARD
AND WE DO THAT WITHIN SECONDS.
WE SERVICE OUR CUSTOMERS THROUGH
EXTENDED STORE HOURS A FULLY
STAFFED CALL CENTER. AND
INTEGRATED ONLINE AND MOBILE
OPERATIONS.
OUR COST OF CAPITAL IS IN THE
DOUBLE DIGITS BECAUSE OF OUR
INDUSTRY RISK PROFILE.
TO OPERATE IN CALIFORNIA ALONE
WE MAINTAIN A HUNDRED AND SIXTY
TWO LICENSES WE FOLLOW STATE
REGULATIONS AND WE FOLLOW
EIGHTEEN FEDERAL REGULATIONS.
WOULD LOVE TO BE A BANK WITH ONE
SIDE OF REGULATIONS THAT WOULD
BE FAR MORE SIMPLE.
FROM OUR NAME IS CARO.
IT'S ACTUALLY THE NAME OF OUR
TECHNOLOGY PLATFORM THAT WITH
HAS BEEN DEVELOPED OVER THE LAST
FIFTEEN YEARS TO SEAMLESSLY
INTEGRATE OUR OPERATIONS FROM
LOAN APPLICATIONS TO SERVICING.
AS A LARGE AN ESTABLISHED LENDER
IN THE MARKET.
LET ME SHARE WITH YOU SOME
ADDITIONAL INFORMATION ABOUT OUR
BUSINESS.
OUR INSTALLMENT LOANS ARE
HUNDRED THIRTY TWO PERCENT APR
IN OUR TITLE LOANS ARE NINETY
SIX PERCENT APR. WE DO NOT
CHARGE LATE FEES OR NSF FEES AND
IT'S NOT UNUSUAL FOR A CUSTOMER
TO COLLISON ASKED TO EXTEND
THEIR DUE DATE BY A COUPLE OF
DAYS.
CUSTOMERS COMPARED ADDITIONAL
PRINCIPLE ON THEIR LOAN OR RE
PAINFUL AT ANYTIME WITH NO
PREPAYMENT PENALTIES.
IN FACT A MAJORITY OF OUR
CUSTOMERS PAY BACK THEIR LOAN IN
LESS THAN A YEAR REGARDLESS OF
THE CONTRACTUAL TERM.
SO THE ONLY PAY FOR THE TIME
WHICH THEY USE THE FUNDS.
FIRST IS FOR UNSECURED
INSTALLMENT LOANS OVER TWENTY
FIVE HUNDRED OUR ANNUAL. THE
AVERAGE ANNUAL GROSS INCOME OF
OUR CUSTOMERS IS JUST OVER FORTY
FOUR THOUSAND DOLLARS.
AND LAST YEAR WE APPROVED ABOUT
HALF OF THE LOAN APPLICATIONS
AND OF THE LOAN APPLICATIONS
THAT WE APPROVED THE AVERAGE
FICUS SCORE WAS SIX TWENTY FIVE.
NOW REMEMBER PSYCHO SCORE TELLS
US VERY LITTLE ABOUT OUR ACTUAL
CUSTOMER INTO THE OTHER ROOM AND
I HAVE TO ASK YOU ABOUT THAT.
YES WE INTEGRATE DATA FROM A
NUMBER OF THINGS IN OUR
CUSTOMERS HAVE HELD THEIR JOBS
MORE THAN SEVENTY PERCENT OF OUR
CUSTOMERS HAVE BEEN IN THEIR
JOBS FOR MORE THAN TWO YEARS.
SO I ASK YOU TO DAY TO VOTE NO
ON AB TWENTY FIVE HUNDRED AND
ALLOW.
LEGAL REGULATED LENDERS LIKE
OURSELVES TO CONTINUE TO SERVICE
THIS CUSTOMER.
THANK YOU NOW I WILL ASK.
ANY ADDITIONAL WITNESSES IN
OPPOSITION TO PLEASE COME TO THE
MICROPHONE AND STATE YOUR NAME
ORGANIZATION IN YOUR POSITION
.
MENDED TO EXCLUDE THE COSTA
VOLUNTARILY PAUL TERRY CREDIT
INSURANCE FROM THE CAP.
THANK YOU.
MADAM CHAIRWOMAN COMMITTEE
MEMBERS MIMES CARRY CARBONE I'M
THE CHIEF LEGAL OFFICER FOR THE
TEAM NEXT FINANCE FAMILY OF
COMPANIES WHERE OPPOSITION TO AB
TWENTY FIVE HUNDRED THANK YOU.
MADAM CHAIR COMMITTEE MEMBERS
DOCTOR RUBIN PARA CHAIR OF THE
LATIN BUSINESS ASSOCIATION AND
WE STRONGLY OPPOSE THIS BILL.
CREATE ON BEHALF OF LAMAR ENOUGH
BUT.
HELLO LYRICISTS ESTIMATES ON
BEHALF OF COMMUNITY LOANS OF
AMERICA IN OPPOSITION.
MADAM CHAIR MEMBERS JABOT COVERT
WITH CHECK INTO CASH
ON BEHALF OF HUNDREDS OF OUR
CUSTOMERS OF LET YOU KNOW THAT
THEY OPPOSE THIS. AS DO I.
VANESSA LATER ON BEHALF OF
CHECKING CASH AND SEVEN HUNDRED
EMPLOYEES. ALSO POSE.
DAVID CANTON ONLINE LENDERS
ALLIANCE IN OPPOSITION.
TRENT MATSON ON BEHALF OF MONEY
TREE IN OPPOSITION.
ROB GREASER ON BEHALF OF.
CALIFORNIA CHECK CASHING STORES
IN OPPOSITION TO THE BILL THANK
YOU.
MADAM CHAIR MEMBERS DOMINIC
TOMORROW HERE ON BEHALF OF.
HE NOVA IN OPPOSITION TO THE
BILL.
AN ONLINE LENDERS.
MARGARET CLUTCHING A BEHALF OF
PANTS MEREKA AND OPPOSITION.
PAUL BAUER ON BEHALF OF ELEVATE
IN OPPOSITION TO THE BILL.
THOMAS LEONARD EXECUTIVE
DIRECTOR CALIFORNIA FINANCIAL
SERVICE PROVIDERS ASSOCIATION
FIFTY EIGHT PERCENT OF THE STAR
FRONT MEMBERSHIP WE OPPOSE.
COMMITTEE.
MEMBERS I.
SINCE OUR TIME FOR QUESTIONS OR
REMARKS.
YOUR GRAYSON.
I WOULD ALLOW THAT THANK YOU
MADAM CHAIR AND THANK YOU TO.
.
BOTH THE AUTHOR AND AND THOSE
THAT SUPPORT AS WELL AS
TESTIMONY FROM OPPOSITION.
AND KNOW WHAT YOU HAVE ALSO.
BROUGHT FORTH.
DATA I WOULD AGREE DATA IS
PARAMOUNT
TO BEING ABLE TO.
.
FORMULATE AUTHOR AND PUT
TOGETHER GOOD LEGISLATION AND AB
PROVIDE POLICY.
SO.
SPEAKING OF WHICH WE'VE BEEN
ASKING.
AT LEAST FROM MY OFFICE FOR
DATA AND.
IT'S BEEN DIFFICULT TRYING TO
GET.
DATA FIRST OF ALL I THINK YOU
MAY HAVE ALREADY SAID THIS BUT
HOW MANY STATES ACTUALLY HAVE A
CAP OF THIRTY SIX.
.
IN THE SPACE OF TWENTY FIVE
HUNDRED TO FIVE THOUSAND.
I BELIEVE IS TWENTY ONE
TWENTY ONE OF THEM.
TWENTY ONE STATES AND. IS THERE
DATA TO SHOW WHAT THE IMPACT OF
THE EFFECT OF THAT CAP.
DOES.
WHEN IT'S INSTITUTED.
WELL THERE'S BEEN. YOU KNOW THAT
THERE'S NO DOUBT THAT PART OF
THE ISSUE BUT GIVEN THE FACT
THAT WE DON'T.
GET DATA AND ASIDE FROM THE
INDUSTRY.
THAT LEADS TO GET IT FROM.
THE THE AND THE STATE'S ABILITY
TO GET DATA AND DIFFERENT STATES
HAVE DIFFERENT.
I OPPORTUNITY GET DATA AND SO WE
HAVE SEEN IN SOME AND SAYS I
KNOW THAT. ALTHOUGH THE MOVES
INDICATION FOR THE REQUEST FOR
RIGOROUS ACADEMIC ANALYSIS.
.
IT WILL IT WAS REALLY FOLLOWED
UP WITH ANECDOTES WITH THINGS
THAT HAPPENED URBAN STATES WE
HAVE SEEN THAT IN SOME STATES
THAT THERE IS AN OPPORTUNITY
ONCE YOU ACTUALLY ALLOW THE CAPS
TO BE IN PLACE. THE ABILITY FOR
A WEATHERBY NONPROFITS WHETHER
IT BE BIG GOVERNMENT ENTITIES OR
CREDIT UNIONS TO FILL THAT GAP.
THEY CAN'T DO THAT WHEN THEIR
IS.
THOUGH THE MILLIONS OF DOLLARS
OF MARKETING OF THAT FRANKLY
EVEN KEEP.
IN SOME CASES.
WILL CUSTOMERS FROM GOING TO
THE MORE RESPONSIBLE LENDERS
THAT ARE CLOSER TO THE AND
AROUND THIRTY SIX PERCENT RANGE.
I SAID YOU HAVE A MORE
INFORMATION COULD MASK
OSCILLATORY SPEAKS SPECIFICALLY
TO SOME OF THE DATA FROM OTHER
STATES YES PLEASE THANK YOU.
REPEAT THE THE DATE I'M I'M JUST
LOOKING FOR.
WHAT KIND OF DATA IS OUT THERE?
FOR THE STATE'S THAT DID
INSTITUTE A CAP.
BETWEEN TWENTY FIVE HUNDRED AND
FIVE THOUSAND DOLLARS OKAY I
THINK YET SO THE THE MOST RECENT
REPORT THAT WE HAVE ON THAT IS
FROM THE NATIONAL CONSUMER LAW
CENTER. IN THE STUDY THAT THEY
DID IS ACTIONS BUT
TO A TWO THOUSAND DOLLAR LOAN
AND SO THERE ARE THIRTY FOUR
STATES THAT HAVE. THIRTY SIX
PERCENT AND LOSS OF A. VOTE OF
ANY PR FOR THOSE SPECIFIC LOANS.
UP SO THERE IS NOT A SPECIFIC
STUDY OF THE TWENTY FIVE HUNDRED
TO TEN AT THIS POINT.
SO SPEAKING TO AND THE SORT OF
THE ANECDOTAL OF OF WHAT IS
SPEAKING PEW DID DO A STUDY
OUGHT SAID LOOK AT WHAT HAS
HAPPENED AFTER RATE CAPS AND AND
AND BASICALLY. FOLKS ARE GOING
BACK TO WHAT THEY WOULD HAVE
DONE ORIGINALLY BEFORE GOING TO
THIS IS WHAT YOU FOUND SO.
BORROWING FROM FAMILY AND
FRIENDS GOING TO PAWN SHOPS.
DIFFERENT THESE ARE THINGS THAT
PEOPLE HAD TO DO TO ACTUALLY GET
OUT OF IT AND WHAT THEY WOULD
HAVE CHOSEN TO DO IN THE FIRST
PLACE. ON IF I CAN GIVE ONE
CALIFORNIA EXAMPLE OF A PERSON
WHO GOT A CAR TITLE LOAN SHE I I
THINK I MENTIONED THIS TO YOU.
TO YOU BEFORE ABOUT IT'S A CAR
TITLE LOAN AND IT WAS.
.
LIKE TWO HUNDRED PERCENT APR IN
AND RIGHT I APPRECIATE THAT IT
DOES BUT I'M LOOKING FOR.
SOLID DATA.
IOWA AND THAT IS HERE SO MAYBE
OPPOSITION WOULD THAT MOVEMENT
BUT WHATEVER I COULD WHAT WENT
BEFORE IT IF I COULD. GIVE YOU
ONE.
PIECE OF DATA THAT I THINK IS
RELEVANT UP BECAUSE WHEN THE
PILOT WAS PUT IN PLACE WAS ALSO
ARGUMENTS THAT IT OF THE MARKET
THOUGH THE WILL BE NOT BE ACCESS
TO CREDIT. WHAT WE FOUND WAS
FROM TWO THOUSAND FOURTEEN A TWO
THOUSAND SIXTEEN THE REDUCTION
INCREASE OF APPLICATIONS OF A
SEVENTEEN PERCENT INCREASE
APPLICATIONS AND LOAN APPROVAL
RATES INCREASE OF FIFTY PERCENT?
FIFTY TWO POINT FOUR PERCENT
DURING THAT TIME PERIOD AND SO
THAT'S.
THAT'S HARD DATA BUT IS A PILOT
PROGRAM BUT WITH THREE HUNDRED
TO TWENTY FIVE HUNDRED DOLLARS
THAT SHOWS THAT THE MARKET
DOESN'T GO AWAY. THAT IMPACT
THEIR STILL ACCESS
AND DIED OF EVEN IN NUMBER OF
APPLICATIONS ACTUALLY WENT UP
DURING THAT TIME PERIOD. AND
WOULD OPPOSITION HAVE DATA THAT
WOULD REFUTE THAT WELL IF WE IF
IF WERE POINTING TO THE PILOT
PROGRAM I WOULD SAY THOUGH IN
TWO THOUSAND FIFTEEN THERE'S A
HUNDRED NINETY FIVE LONG HUNDRED
NINETY FIVE THOUSAND LOANS UNDER
THE PILOT. IN TWO THOUSAND
SIXTEEN IT WENT UP SIX THOUSAND
LOANS COMPARED. TO OVER TWELVE
MILLION PAYDAY LOANS DURING THAT
SAME PERIOD OF TIME EVERY YEAR.
PAYDAY LENDERS DO MORE PILOTS IT
DIDN'T DO MORE LOANS THAN PILOT
LENDERS DO THEY DO WITH THEM IN
THE FIRST TWO WEEKS OF. OF
JANUARY THE PILOT PROGRAM
LENDERS DO ALL YEAR LONG I THINK
THE PILOT PROGRAM WAS A ATTEMPT
TO TRY TO SATISFY UNDER TWENTY
FIVE HUNDRED BUT THE DATA SHOWS.
THERE ARE NOT MANY PILOT LOOK
PROGRAM LENDERS I BELIEVE
THERE'S ONLY THREE OR FOUR
THEY'RE ACTUALLY DOING ANY
LANDING. AND CUSTOMERS ARE STILL
GOING TO DIFFERENT FINANCIAL
INSTITUTIONS SUMMER TO OUR
MEMBERS TO GET WHAT THEY NEED.
UP AND THEN IT'S FOR SOME OF THE
OTHER STATES THERE'S BEEN
INVESTIGATE REPORTS THAT SHOWS.
THAT COMPLAINTS HAVE GONE UP IN
NEW YORK OF IN YOUR FEDERAL
RESERVE DID A STUDY YEARS AGO
THAT SHOWED WHEN. I'M ACCESS TO
CREDIT WAS DENIED IN NORTH
CAROLINA. CLUB AND GEORGIA IT
SHOWED THAT THERE WERE INCREASES
AND WATCH LIKE I MENTION OUR
TESTIMONY THOSE NEGATIVE EFFECTS
THAT I PREVIOUSLY MENTIONED.
OKAY OF AYE AND I APPRECIATE
THAT.
STILL LOOKING FOR SOME SOLID
GROUND ON ON ON THE DATA THERE.
WHAT TERM JUST REAL QUICK I
DON'T OVER THERE WOULD BE FROM
INDUSTRY OR WHAT BHUTTO WENT IS
THE LOOK OF DENIAL RATE RIGHT
NOW UNDER THE CURRENT SYSTEM FOR
LOANS BETWEEN TWENTY FIVE
HUNDRED AND FIVE THOUSAND?
WOULD ANYBODY HAVE THAT
INFORMATION AS FAR AS WHAT.
AND. WE APPROVED ABOUT ONE HALF
OF ALL LOAN APPLICATIONS THAT WE
RECEIVED LAST CALENDAR YEAR OKAY
SO OUT OF THAT ONE HALF.
HOW MANY OF THOSE LOANS WOULD
ACTUALLY ENTER INTO A A DEFAULT
STATE IT IF THERE WAS THIS STATE
LIKE THAT HOW MANY OF THOSE
LOANS WOULD GO INTO DEFAULT?
SO ARE DEFAULT WE.
.
WE HAVE ABOUT THIRTY PERCENT OF
OUR LOANS THAT WE ORIGINALLY IN
CALIFORNIA DO OF THE LOAN AMOUNT
THAT WE ORIGINALLY IN CALIFORNIA
DOES END UP IN THE FALL. SO IF
THEY END UP THAT YOU'RE TALKING
ABOUT A THIRD OF THE LOANS
RICHARD GIVING OUT END UP IN THE
FALL SO NOW I'M STARTING SEE WHY
IT'S SO EXPENSIVE.
SO.
.
OUT OF THAT THIRD THE END UP IN
DEFAULT.
HOW MANY OF THE THIRD DO YOU
CHARGE OFF SO FOR THE UNSECURED
IT IS IT'S ABOUT THIRTY PERCENT
OF THE AMOUNT THAT WE ORIGINATE
FOR AUTO TITLE LOANS IT'S IN THE
HIGH TEENS?
I WOULD COUPLE THAT NUMBER WITH
OUR ACTUAL AND WE PUBLICLY
REPORT OUR NUMBERS ARE A NET
MARGINS LAST YEAR WERE FIVE
POINT ONE PERCENT.
SO IF YOU CAN SEE IT IS VERY FOR
OUR CUSTOMER BASE UNDERWRITING
OUR CUSTOMER IS A VERY DIFFICULT
THING TO DO. BUT WE TRY OUR BEST
TO SERVICE OUR CUSTOMERS.
OKAY SO YOU A THE WAY YOU
SERVICE YOUR CUSTOMER.
THEN IS BY ALLOWING ACCESS TO
CAPITAL THAT OTHERWISE THEY
WOULD HAVE NEVER HAD ACCESS TO.
AT A VERY HIGH RISK.
CORRECT OKAY SO.
BASICALLY THEN IT.
CAN I GO BACK TO THE. THE THIRD
THAT ENDS UP IN DEFAULT.
HOW MUCH OF THAT PERCENT
ACTUALLY ENDS UP BEING CHARGED
OFF OF THE THIRD?
IS THAT THE WHOLE THIRD THE GETS
CHARGED OFF OR IS IT.
WE CAN LOOK IF YOU IF YOU DON'T
MIND WE CAN LOOK AT THE PILOT
PROGRAM BECAUSE ONCE AGAIN THAT
IS SET AT THIRTY SIX PERCENT
WERE RESTRICTING. OF ACCESS
UNDER TWENTY FIVE HUNDRED I
THINK THAT WE DO HAVE NUMBERS
FROM THE REPORTS FROM THE
DEPARTMENT OF BUSINESS
OVERSIGHT.
AND WHAT THAT SHOWS AND THE
PILOT THAT ABOUT THIRTY PERCENT
OF LOANS GO INTO DEFAULT AT SOME
POINT THEY'RE LATE PAYMENTS.
AND THEN OF THOSE THIRTY PERCENT
THE CHARGE OFF RATE I BELIEVE
IT'S TEN PERCENT OKAY END UP AND
TEN PERCENT COMPARED TO LET'S
SAY IF WE GO BACK TO PAY DAYS
BEING A SMALL DOLLAR EXAMPLE.
THOSE ARE MORE LIKE THREE
PERCENT.
SO WE'RE SAYING THAT IT'S A.
THOSE ARE THE NUMBERS SO THAT
WOULD MAKE SENSE THEM WHEN YOU
SAID FIVE. THINGS FIVE POINT
SOMETHING PERCENT CORRECT ARE
YOU RIGHT CREDITS LAST YEAR
PROFIT MARGIN WAS FIVE POINT ONE
PERCENT.
OKAY.
THE PROFIT MARGIN FOR THE AND
YES FOR OUR COMPANY FOR YOUR
COMPANY OKAY SO I WAS ACTUALLY
LOOKING FOR THE ACTUAL CHARGE
OFF.
BECAUSE IT WHAT I'M TRYING TO
FIGURE OUT IS YOU HAVE TO. YOU
HAVE TO FIGURE OUT A WAY IN
ORDER TO STAY IN BUSINESS.
YOU'VE GOT TO TRY TO FIGURE OUT
A WAY TO SUBSIDIZE AND COVER FOR
THE CHARGE OFFS.
AT A HIGH RISK IN A HIGH RISK
INDUSTRY
IS THAT RIGHT. WELL YES I ALSO
LIKE TO MAKE THIS POINT SOURCE
THE COST IS OBVIOUSLY THAT'S
WHAT WE'RE ALL TALKING ABOUT WHY
ARE THESE LOANS BEING CHARGED AT
THIS RATE THAT WAS MY NEXT
QUESTION RIGHT SO WHAT WHY IS
THAT OCCURRING WELL IF YOU LOOK
AT THE COST STRUCTURE AND I.
THINK THAT'S WHAT THE REASON WE
NEED TO DO A BIT BETTER ANALYSIS
THE. THE CFL AND REPORT
CONSOLIDATES A LOT OF COMPANIES
RIGHT INTO HIM MORTGAGE LENDERS
IN THEIR.
AUTO TITLE LENDERS INSTALLMENT
LENDERS ARE A LOT OF DIFFERENT
TYPES OF LENDERS AND SO IT'S ALL
BLENDED IT MAKES IT VERY
DIFFICULT TO LOOK AT EXACT DATA.
FOR THIS PARTICULAR PART OF THE
INDUSTRY BUT WHAT WE DO SEE IS
THAT. OUR TYPE OF COMPANIES WE
MEET WITH THE CUSTOMERS.
MAJORITY TUMBLE ITEMS ARE
STOREFRONTS WE ACTUALLY HAVE THE
CUSTOMER NOT ONLY DO THEY TAKE
UP A LOT OF THE STUFF AT THE
STORE FRONT. WHICH REQUIRES
PHYSICALLY MENTALLY UNDERWRITING
A LOT OF TIMES ARE PULLING IN
DOCUMENTS FROM THE CUSTOMER
MAKING SURE WE CAN SEE THEIR
BANK STATEMENT READ IT. OUR
ONLINE LENDERS DO THAT AT THE
SAME TIME BUT A LOT OF US THAT
HAVE STORE FRONTS WE SEE THAT
CUSTOMER EVERY MONTH WHEN THEY
COME IN TO MAKE THE PAYMENT.
MEAN MOST BANKS DON'T EVER SEE
THE CUSS WORDS AGAIN ON ON ON AN
AUTO LOAN OR HOME LOAN.
SOMEWHERE HIGH TOUCH SO THAT
PRODUCES THERE'S LABOR COSTS THE
RISING OCCUPANCY COST TO HAVE
STORE FRONTS SO IT AND THESE ARE
HIGHER RISK CUSTOMER BASE.
SO THEIR CUSTOMERS THAT
OBVIOUSLY BOMB WERE NOT
APPROVING SO WE HAVE TO ALSO
UNDERWRITE WAS APPLICATIONS AND
WE TURN THOSE ARE TURNED DOWN
UNDER THE PILOT PROGRAM I
BELIEVE THAT THE. THE APPROVAL
RATES ABOUT THIRTY FIVE PERCENT
FOR CUSTOMERS THAT WALK INTO A
STORE FRONT.
SO. THEY ARE THAT THOSE ARE THE
NUMBERS THAT SHOWS WHY THIS IS A
LITTLE BIT MORE OF AN EXPENSIVE
LOAN. OF THEN LET'S SEE MORE
TRADITIONAL CREDIT CARDS OR
FRAUDULENT SO NO DOUBT AND AND
AND AND I DON'T MEAN TO A.
UNDER MINOR OR QUESTION YOUR
INTEGRITY NO DOUBT THERE ARE
GOOD PLAYERS.
THAT ARE LOANING IN THE SPACE OF
TWENTY FIVE HUNDRED TO FIVE
THOUSAND EVEN TEN THOUSAND I GET
THAT. AND THEY ARE JUSTIFYING
THEY ARE USING DATA TO TRY TO TO
DO WITH A GOOD BUSINESS MODEL.
HOW?
BUT HOW MUCH WE'RE TO WHAT
DEGREE IS THERE UNDERWRITING A
IS UNDERWRITING TAKING PLACE IN
THE PROCESS OF YOU GIVING UP
THOUGH BELONGS.
WELL I'D LIKE TO SAY IS REQUIRED
BY LAW.
NONE OF US CAN DO ALONE HEARING
CALIFORNIA WITHOUT DOING
UNDERWRITING. OF IN FACT IF YOU
LOOK AT THE CALIFORNIA CODE OF
REGULATIONS THAT BELIEVE IT'S
CODE SECTION OF FOURTEEN SIXTY
TWO. THAT REQUIRES MEANINGFUL
UNDERWRITING THE DEPARTMENT HAS
THE ABILITY TO COME IN AND AUDIT
EACH LENDER. BOMB IS AUDITED BY
THE DEPARTMENT OF BUSINESS
OVERSIGHT AND THERE'S REQUIRE
UNDER EXISTING LAW THAT WE HAVE
TO UNDERWRITE. SO I MEET OUR OUR
OPINION IS THAT INSTEAD OF
IMPOSING BECOME A BARRIER TO
ENTRY TO CREDIT WITH THE RATE
CAP.
IT SOUNDS LIKE THERE MAY BE
BEHAVIORS OR SPECIFIC THINGS WE
WANT TO DO ABOUT UNDERWRITING I
KNOW OUR INDUSTRIES OPEN TO
THOSE DISCUSSIONS AS OPPOSED TO
MAYBE TAKING A CHAINSAW. TO THIS
SEGMENT OF THE MARKET AND MAYBE
COME AT IT WITH A SCALPEL. AND
WE CAN HONE IN ON IT BUT RIGHT%
NOW THERE'S ALREADY A CALIFORNIA
COURT REGULATION SPECIFIC THE
LENDERS MUST UNDERWRITE.
WE CREDIT SCORE EVERY SINGLE
APPLICATION BOTH SECURED AND
UNSECURED. AND WHEN THE DB O.
COMES INTO AUDIT OUR FIRM THEY
ASK US A NUMBER OF QUESTIONS
ABOUT THAT CFL REQUIREMENT WE
PROVIDE INFORMATION AND WHAT WE
DO AND UNDERWRITING.
OKAY.
I JUST WANNA ADD KIND OF THE
DATA POINT THAT YOU'RE ASKING
FOR WE'VE ASKED NOW.
SECOND YEAR IN A ROW FOR DATA
FROM THE LENDERS TO SEE WHY IT
COSTS SO MUCH WE HEAR
STOREFRONTS WE HEAR YOU'VE GOT
YOU KNOW YOUR EMPLOYEES BUT THEN
WE LOOK AT THE ONLINE LENDERS
AND WE WONDER WHY DO YOU CHARGE
ONE HUNDRED PERCENT. WHY DOES
YOUR WEBSITE SAY YOU APPROVE IN
THREE HOURS AND WHAT'S GOING ON
THERE AND THEN THE REPORTS THAT
WE SEE FROM TVO SHOW?
LOAN ME HAS NINETY NINE PERCENT
OF THEIR LOANS ARE ONE HUNDRED
PERCENT APR HIGHER WHAT KIND OF
UNDERWRITING IS HAPPENING WHERE
NINETY NINE PERCENT OF YOUR
LOANS.
ARE AT ONE HUNDRED PERCENT OR
HIGHER AND THAT'S THE VAST
MAJORITY OF THE ONES THAT ARE
HIGH COST LOANS AND USER SECURED
BY YOUR VEHICLE THESE.
I JUST DON'T UNDERSTAND THE COST
AND WE HAVE ASKED FOR THAT DATA
POINT THIS IS THE SECOND YEAR
NOW WE HAVE NOT GOTTEN IT AND
WHEN WE KNOW THERE'S PROPRIETARY
INFORMATION FOR BUSINESSES AND
THERE'S FOR WE'VE BEEN TOLD THAT
THERE'S A THIRD PARTY THAT CAN
PUT THE STATE OF. TOGETHER WE
HAVEN'T SEEN IT.
AND CHAIR I'M NOT TRYING TO
MONOPOLIZE THE THE MEETING HERE
I JUST HAD A COUPLE QUESTIONS.
QUESTION SO WE HAVE A DOG SORRY
YEAH OTHERS THERE IS ONE OTHER
DATA POINT ON CASA DIDN'T COME
UP LEAST GOING TO GO BACK TO
THAT SITE TO THE NUMBER SO OF
THE OTHER QUESTIONS. I DO HAVE A
OF JUST COUPLE MORE QUESTIONS I
WANT TO HEAR HIS RESPONSE BUT
THEN I HAVE A COUPLE MORE. AND
THEN ALL OF.
I DEFER TO YOU TO HAVE OTHER
MEMBERS ASK QUESTIONS AT THAT I
WANT TO COME BACK TO MAKE A FEW
COMMENTS.
THANK YOU SIR IT WAS A PRISONER
WAS ONE DATA POINT THAT WE
DIDN'T TALK ABOUT WHICH IS
PARAMOUNT FOR ALL LENDERS IS HOW
DO YOU GET YOUR MONEY AS A
LENDER WHAT'S THE COST INVOLVED
WITH THAT. TRADITIONAL FINANCIAL
INSTITUTIONS THAT CAN LEAD TO
THIRTY SIX BELOW A LOT OF THOSE
INSTITUTIONS ARE BORROWING
MONEY.
BANKS CREDIT UNIONS ARE GETTING
THEIR MONEY NEXT A NEXT TO ZERO
WITH THE FEDERAL FUNDS RATE. OF
OUR TYPES OF OF LENDERS THERE
MOST OF OUR PRIVATE AND SO OUR
COST OF CAPITAL OR IN THE TEENS
SUCH ANYWHERE BETWEEN FOURTEEN
TO EIGHTEEN SOME LIP. COMPANIES
ARE PUBLICLY TRADED THAT THAT IS
AVAILABLE IN THEIR TEN K.
REPORTS HERE SINGS HIGH IS
EIGHTEEN TO NINETEEN PERCENT.
SO WE HAVE TO THEN TURN AROUND
AND OBVIOUSLY EGGS AB ABSORB
THAT COST TO CAPITAL.
INVITE BUT ASSEMBLY MEMBER
KALRA.
THINK YOU THINK MANAGER I'M. AND
I THINK THAT'S PART OF THE
ISSUES THAT YOU'RE BUILDING IN
FOURTEEN TO EIGHTEEN PERCENT.
THAT IS ACCOUNTED FOR INTO THESE
LOANS AND THEY'RE GOING OUT OF
THE BOOK THE PRIVATE MARKET AND
GETTING LOANS AND AND MONNING
THEM OUT BUT I WILL MAKE THEM
MENTIONED THIS ACTUALLY STRAIGHT
OUT. OF THE COMMITTEE REPORT. OF
REGARDING THE UNDERWRITING
UNPAVED FIVE IN THE MARKET FOR
HIGH COST INSTALLMENT LOANS
ADDRESSED BY THIS BILL THERE IS
NOT A STRONG MUTUAL INTEREST.
BETWEEN LENDERS AND BORROWERS BY
CHARGING HIGH INTEREST RATES
LETTERS CAN GENERATE ENOUGH
REVENUE TO PROFFER ALONE EVEN
BORROW EVENTUALLY DEFAULTS. THIS
MISALIGNMENT OF INTEREST CREATES
AN INCENTIVE OF UNDERTOW BOYD
THE COSTS ASSOCIATED
UNDERWRITING WHICH RESULTS IN
BORROWS ACCEPTING LAWS THEY
CANNOT AFFORD. DATA FROM THE DDO
SO THAT SOME OF THE LARGEST CFL
MANNERS IN CALIFORNIA GENERATED
PROFITS IN. TWO THOUSAND SIXTEEN
DESPITE LOAN CHARGE OFFS AS A
PROPORTION OF ORIGINS OF THIRTY
FIVE TO FORTY FIVE PERCENT.
AND SO WHEN YOU TALK ABOUT. IT
IN AND AS WAS REFERRED TO BY
GRAZIELLA. BUT YOU HAVE HUNDRED
PERCENT. INTEREST RATE ON A AND
UP.
THERE'S A REASON WHY THEY'RE
ABLE TO.
BUT APPROVED LOANS THAT
OTHERWISE WOULDN'T BE APPROVED
IS BECAUSE THEY CAN MAKE A
PROFIT OFF ENOUGH ALONE
EVENTUALLY IS DEFAULTED ON OR
OTHERWISE DISPOSED OF.
OKAY THANK YOU FOR THAT AND
DAHLE GO BACK IN.
MAKE MYSELF MORE FAMILIAR WITH
THAT.
BECAUSE I DIDN'T SEE THAT PART
OF IT.
WHEN IT COMES TO ORIGINATION
FEE
ASSEMBLYMEMBER KALRA. IN EUROPE
IN THE CURRENT LANGUAGE OF THE
BILL.
IT SAYS THAT.
IN SPEAKING OF IT THAT IT COULD
BE UP TO SEVEN PERCENT
OF THE BALANCE OF THE LOAN.
FOR NINETY DOLLARS WHICHEVER IS
HIGHER.
YOU'RE GUARANTEED AT TWENTY FIVE
HUNDRED DOLLARS YOU'RE
GUARANTEED THAT NINETY DOT OR
OUTSIDE NOT HIGHER WHATEVER'S
LOWER SO SEVEN PERCENT OR NINETY
DOLLARS WHICHEVER IS LOWER. YOUR
GUARANTEED AT TWENTY FIVE
HUNDRED DOLLARS TO NEVER BE AT
SEVEN PERCENT BECAUSE NINETY
DOLLARS IS GUARANTEED TO BE
LOWER. STRAIGHT ACROSS THE BOARD
AND IT ONLY GOES UP FROM THERE.
SO THOUGH THE THE ORIGINATION
FEE THAT'S BEING CHARGED IS
BASICALLY WHAT YOU'RE SAYING
THIS IS GONNA BE NINETY DOLLARS
STRAIGHT ACROSS THE BOARD AND
NOT SEVEN PERCENT. BECAUSE WHEN
I WAS IN CONVERSATION.
WAS STAKEHOLDERS IT WAS THEIR
UNDERSTANDING AND ALSO MY
UNDERSTANDING I I DID NOT KNOW
ABOUT THE NINETY DOLLARS. THAT
IT WAS THE SEVENTY OR SEVEN
PERCENT THAT WOULD BRING UP FROM
THIRTY SIX TO FORTY TWO PERCENT
THAT WAS KIND OF A.
AN ANGST BOOK SOMETHING THAT
THEY WERE WILLING CAN YOU
ADDRESS THAT AS FAR AS WHAT THE
DISCREPANCY IS THERE YEAH IT WAS
IT WAS DRAFTED A IN A MANNER
THAT IT WAS THE NINETY DOLLARS
WAS NEGOTIATION CERTAINLY THAT
OCCURRED BUT SOME OF THE. FOLKS
INDUSTRY THAT WERE WHEN TO COME
TO THE TABLE TO TALK ABOUT IT.
AS OPPOSED TO SEVENTY FIVE
DOLLARS WHICH WAS A WHICH IS
ORIGINATION UNDER TWENTY FIVE
HUNDRED. IN WHEN IT WAS DROPPED
TO PUT SEVEN OR NINETY WHICH I
AGREE DOESN'T MAKE MUCH SENSE
WILL REVISIT THAT BUT. BUT
NINETY DOLLARS OF WHAT IS WHAT
WAS INTENDED OKA BUT I'M HAPPY
TO BUT YOU KNOW BUT IF THIS GOES
TO COMMITTEE PECAN. MEDINA TALK
ABOUT THAT* SORRY THAT'S THE
REASON IS A DRAFTING YOUR
THAT'S.
IN THE PILOT AND WE PICKED UP
THE LANGUAGE FROM THE PILOT
THANK YOU.
THAT AND THE INTENTION OF NINETY
DOLLARS OPENS AND SALAS
IDENTIFIED SINCE THE PILOT
OBVIOUS IS A LOWER AMOUNT THAT
THAT.
THAT MADE SENSE FOR THE LOWER
AMOUNT.
RIGHT SO PILOTS UP TO TWENTY
FIVE HUNDRED YEAH SO I CAN SEE
WHY THAT WOULD HAVE BEEN THERE
BUT. ARE YOU TELLING ME THAT.
SEVEN PERCENT IS NOT THE INTENT
AND THAT IT'S THE NINETY DOLLARS
THAT'S THE INTENT CAR. OKAY AND
I AND I JUST WANT TO CLARIFY
THAT IN THE ANALYSIS OF THE
COMMITTEE THAT IS POINTED OUT
AND IT CAN BE ANALYSIS AND.
IT MAY.
ASSEMBLY MEMBER KALRA WILL YOU
BE ACCEPTING THE COMMAND ME
COMMITTEE AMENDMENT THAT ARE IN
THE ANNOUNCES YES THAT IT WAS
ALSO POINTED OUT DURING THE
MEETING WE HAD LAST TUESDAY.
WITH WITH STAKEHOLDERS.
THAT WAS AYE MEETING OPEN ALL
OF THEM THAT I ATTENDED THROUGH
SKYPE IT WAS ALSO BECAUSE IT WAS
A QUESTION THAT ONE OF THE
LENDERS ASKED ABOUT ITS WAS
CLARIFIED THAT IT WAS. THAT WAS
US OF KNOWLEDGE IN THE WORLD ARE
NOW SO NOW WEDNESDAY'S INSTEAD
OF IT BEING THIRTY SIX WITH AN
ORIGINATION FEE THAT COULD TAKE
IT OF FORTY TWO. IT'S NOW THIRTY
SIX PERCENT WITH A NINETY DOLLAR
FEE THAT WOULD AT THE MOST
RECENT TO THIRTIES THAT THIRTY
NINE POINT SIX PERCENT FOR MAGIC
FORTY TWO POINT NINE.
THAT'S WITH SEVEN PERCENT NINETY
DOLLARS.
ALRIGHT I'LL HAVE TO THAT THE
NINETY DOLLARS TAKES MY THAT WAS
LESS THAN NINETY DOLLARS AN
INCREASE FROM THE SEVENTY FIVE.
FOR LOANS UNDER TWENTY FIVE
HONORS THE NEGOTIATION REALLY
WAS UNDER THE SEVENTY FIVE OR
NINETY
AND SO THE AGREEMENT WAS THAT
YES YOU CAN ACTUALLY GET MORE
THAN SEVENTY FIVE DOLLARS. ON
THESE HIGHER DOLLAR LOANS OVER
THEIR HEADS UP TO NINETY DEGREE
SO THAT I DOLLARS POINT OF
CONTENTION DATA ANYWAY I'M NOT
REALLY UP ON HERE BUT I'M NOT
HERE TO WORK ON THAT AS WELL.
OKAY SORRY ASSEMBLY MEMBER
GRAYSON YES AND THEN.
.
DO YOU BLOOM.
DO YOU BELIEVE THAT. IF THERE
IS A CORPORATION OR A COMPANY
THAT IS MAKING LOANS AND THOSE
LOANS ARE VERY HIGH RISK AND I
THINK EVERYONE HERE WOULD AGREE
THOSE LAWS ARE VERY HIGH RISK.
THEN THAT.
THAT CORPORATION COMPANY SHOULD
BE GIVEN THE OPTION.
OF.
OFFERING VOLUNTARY.
LOAN INSURANCE.
I THINK AND WHAT THE COUPLE
THINGS ONE IS THAT IF.
COMPANIES ARE OFFERING.
HIGH RISK LOANS.
AND THEIR INTERESTS
ARE ALIGNED WITH THE CUSTOMER IN
THAT THEY ACTUALLY.
DESIRE THE CUSTOMERS ARE TO PAY
OFF THE LOAN. THEN I THINK THAT
THAT THAT WOULD BE A WORLD THAT
WE'RE NOT CURRENTLY IN.
IF YOUR TALKING ABOUT IT AND
AND ALTHOUGH I BUT I'M GLAD YOU
RAISED INSURANCE POINT THIS IS
SOMETHING THAT I COMMIT
CONTINUOUS TALK ABOUT INSURANCE
BECAUSE I THINK I'VE READ ABOUT
THIS GUY THAT THIS HOUSE THE
COMPANY VIEW THAT. MIGHT.
IMPRESSION OF INSURANCE WAS VERY
DIFFERENT IN THIS WHOLE JOURNEY
STARTED.
AND I'LL BE TALK TO SOME.
.
THE BILL TAUGHT LIVE WORK GOING
TO CONTINUE TO TALK TO FOLKS
THAT YOU OFFER INSURANCE THAT
INDICATED THERE INSURANCE
SOMETIMES IN THE ONE TO ELEVEN
DOLLARS A MONTH RANGE NOT THE
HUNDRED TWO DOLLARS A MONTH
RANGE. OPERATE WE'RE COMMITTED
TO KEEN TO TALK TO THEM THIS
BILL DOES NOT PROHIBIT CREDIT
INSURANCE AND ANYWAY. SO DOES
ALLOW FOR IT.
BUT IF THERE IS SOME KIND OF
BUSINESS MODEL THAT A COMPANY
HAS WHERE. THE CUT INSURANCE IS
NOT EGREGIOUS AND AS PART OF HOW
THEY OPERATE AND PROTECT
THEMSELVES AND PROTECT THE
CONSUMER. THEN YES ABSOLUTE I'M
COMMITTED TO CONTINUING
CONVERSATIONS ON CREDIT
INSURANCE MOVE THAT WOULD THAT
WOULD NOT BE WITHIN THE
PARAMETER OF THE CAP.
I THINK THAT THAT'S SOMETHING
THAT WE PARTY COMES AT
WE HAVE ABOUT CONVERSATION
ALRIGHT AND THEN.
CREDIT REPORTING MY LAST
QUESTION CHAIR.
THAT OBJECT THANK YOU CREDIT
REPORTING BECAUSE I SEE HER
FINGER ON THAT MIKE SHE'S BUT
THE TURN ME OFF.
.
WHAT ADVANTAGES THAT FOR THE
CONSUMER?
SENATE HOW COULD WE WORK THAT.
IN A CONVERSATION SO ABSOLUTELY
COMMITTED TO FURTHER TALK MY
CREDIT REPORTING. LA WOULD WANT
TO SEE YOU BUT THE COSTS ARE
ASSOCIATE WITH THAT BECAUSE OF
COURSE. IT THERE ARE COSTS
ASSOCIATED THEIR PASS ON THE
CONSUMER THAT ALSO WORKS INTO
THIS WAS HIS WEAKNESS WORKS INTO
THE OVERALL CONVERSATION OF. OF.
THEY THE INTEREST RATE WHAT
HAVE YOU BUT I AM COMMITTED ARE
AND HAVE INDICATED THIS THE
CHAIR THAT I THINK IT'S AN
ABSOLUTELY FAIR ISSUE TO
CONTINUE CONVERSATIONS ON ITS
CREDIT REPORTING. AND LOOK
FORWARD TO TALKING TO YOU
SPECIFICALLY MORE ABOUT THIS
AUDIT DISCUSS WHO COMMITTEE
PRIOR TO IT. AGAIN INTO FOUR AND
BUT QUITE POSSIBLY HIGHER TO GET
INTO APPROPRIATIONS BILL.
THANK YOU ASSEMBLY MEMBER
GRAYSON FOR YOUR THOUGHTFUL
QUESTIONS AND I JUST WANNA
ACTUALLY TO CLARIFY THAT THE
ANALYSIS PROVIDES THAT IT SHARES
A NUMBER OF CONCERNS ARE NOT
AMENDMENTS BUT. SHOP THEY OUR
CONCERNS AND ONE OF THE ONES
THAT WAS IDENTIFIED BY ASSEMBLY
MEMBER GRAYSON IS I'M IN THAT
ANALYSIS.
THANK YOU MEMBERS A. ASSEMBLY
MEMBER GONZALEZ FLETCHER I JUST
HAVE A A KIND OF SIMPLE QUESTION
ON HOW THIS ACTUALLY WORKS HAVE
A COMMUNITY THAT.
YOU REALLY CAN'T GOAL BLOCK
WITHOUT SOME SORT OF LOAN
AVAILABILITY.
.
IF SOMEBODY WALKED IN TO ONE OF
YOUR.
FRANCHISES AND ASK FOR A LOAN
I'M.
FAMILY MEMBER OF MINE AND YOU
RAN THEIR CREDIT SCORE AS PART
OF TRYING TO FIND OUT WHAT YOU
CHARGE. AND THEY HAD A GOOD
CREDIT SCORE WOULD THEY BE
DIRECTED TO A MORE REASONABLE.
LOAN PORTION OR IS THERE A
MINIMUM PERCENTAGE THAT YOU'D BE
CHARGING. FOLKS.
IS THEIR RESPONSIBILITY TO ALERT
CUSTOMERS ON TO THE FACT THAT
THERE ARE. ALTERNATIVE MODELS
WITH.
BANKING OPTIONS FOR PEOPLE WHO
ACTUALLY.
COULD ACCESS IT IF IF.
THERE WERE MORE UP PLACES
AVAILABLE.
FOR TRADITIONAL MONTHS RIGHT.
SO CUSTOMERS TYPICALLY COME
INTO OUR STORE THEY FILL OUT AN
APPLICATION WE ASK THEM.
FOR SOME BASIC INFORMATION AND
THEN WE LET THEM KNOW WHAT
THEY'RE ELIGIBLE FOR SO ARE THE
PRODUCTS THAT WE HAVE AVAILABLE
IN OUR STORE IS AN AUTO TITLE
LOAN IF THEY. MEET THE
ELIGIBILITY FOR THAT OR NON
SECURED LOAN OVER TWENTY FIVE
HUNDRED OR PAYDAY LOANS.
SO WE DON'T NECESSARILY DIRECT
THEM TO OTHER PLACES WE DON'T
KNOW NORMALLY FIND THAT THAT'S
THE SITUATION EITHER BUT NOT
NORMALLY BUT THERE ARE PEOPLE
WHO COME MEN RIGHT WHO I.
PROBABLY COULD.
DO MUCH BETTER IN THE MARKET IF
IT WERE AVAILABLE. IN IN THE IF
I COULD BUT THEY JUST USED AS.
YOU KNOW BALANCING OUT THE RISK.
I WOULD SAY THE MAJORITY OF
PEOPLE THAT DO WALKING ENTER
ENTER THE FACILITIES ARE MAY
APPLY ONLINE WITH LICENSE ONLINE
LENDERS HAVE ARE EXPLORED THOSE
OPTIONS.
THEY'VE BEEN TURNED DOWN BY
THEIR BANK OR CREDIT UNION THEY
RECOGNIZE THAT THEY DON'T
THEY'RE NOT QUALIFYING FOR. THE
YOU KNOW THIRTY SIX PERCENT ARE
UNDER UNDER LOAN IN FACT I KNOW
THAT SEVERAL LETTERS HAVE
REPORTED THAT WHEN THEY RUN
CREDIT AS PART OF THE
UNDERWRITING. THEY SEE THE
INCREASE FROM THE TRADITIONAL
FINANCIAL SORT THERE'S NO DOUBT
AND WE'RE JUST TALKING. NIGHT IF
THAT RIGHT BUT IF IF YOU KNOW IF
MY DAUGHTER WALKED INTO THE
CORNER STORE.
WHAT I JUST FOUND IT TO BE AN
EXTREMELY HIGH CREDIT SCORE FOR
A TWENTY TWO YEAR OLD?
?
STOP IT THERE WOULD BE NO.
SUGGESTION THAT SHE MIGHT BE
BETTER SERVED WITH A LOAN UNDER
THE PILOT OR BY GOING TO A
TRADITIONAL BANK BECAUSE SHE HAS
BEEN UNBANKED.
SO SPECIFIC ALL TALK ABOUT MY
STORES I OFFER I'M A FIGHTER FOR
THE PILOT PROGRAM.
SO THEY CAN WALK IN AND THEY CAN
DO IT HAD A LONG. THEY COULD DO
A PILOT PROGRAM ONE OF THE
QUALIFY. AND THEN WE ALSO OFFER
THE LOANS FOR AUTO TITLE IN IN
INSTALLMENT WE HAVE A MYRIAD OF
FINANCIAL PRODUCTS FOR PEOPLE TO
QUALIFY.
SO IN THAT SITUATION THAT PERSON
DOES QUALIFY FOR PILOT PROGRAM
WON'T WE'RE GOING DIRECTLY TO
THE PILOT PROGRAM ONE. A LOT OUR
EXPERIENCES WHICH WOULD BE
THIRTY SIX PERCENT RIGHT THROUGH
WELL ACTUALLY THE PILOT PROGRAM
IS A THIRTY SIX PERCENT INTEREST
RATE BUT THOSE EIGHT THOSE AP
OURS ARE IN THE SIXTY PERCENT
THE TOP OUT AT SIXTY PERCENT.
SO. THAT PERSON IF THEY QUALIFY
THAT THEY WOULD BE DIRECTED TO
THAT PRODUCT.
IN YOUR STORE IN MY STORE AND I
ALSO KNOW THAT MANY STORES THE
DEPARTMENT OF BUSINESS OVERSIGHT
HAS PRODUCED
DATA UP OR I'M SORRY PRODUCED
FLYERS THAT A LOT OF MEMBERS. IN
OUR TRADE ASSOCIATION HAVE THOSE
AVAILABLE TO CUSTOMERS THE WHEN
THEY WALK IN THEY DO SEE OTHER
OPTIONS. LOT OF THE LONG
CONTRACTS THAT ARE PRODUCED BY
LAW THE LENDERS WILL ACTUALLY
HAVE IN THE FEDERAL REQUIRED
LOAN DOCUMENTATION USUALLY A BOX
IT DOES SAY THIS IS A HIGHER
COST CREDIT YOU MAY HAVE OTHER
OPTIONS AVAILABLE TO YOU. BUT
THESE I THINK ARE ARE DEFINITELY
THINGS THAT WE WOULD LIKE TO
EXPLORE I THINK THERE'S A LOT
MORE CONSUMER PROTECTIONS THAT
WE MAY BE ABLE TO GET WITH. THE
AUTHOR ON ITS INSTEAD OF JUST
IMPOSING A RATE CAP BECAUSE THAT
JUST IT JUST STOPS ALL
DISCUSSION IT JUST THESE LETTERS
WILL NO LONGER BE ABLE TO EVEN
OFFER THAT. THAT SUGGESTED WHEN
CUSTOMERS WALKING INSTEAD OF
JUST TURNING AWAY.
I'M I'M JUST CONCERNED BECAUSE I
I FEEL LIKE WHEN I ASK THESE
QUESTIONS I DON'T GET REALLY
ANSWERS I GET LIKE THIS MIGHT
HAPPEN IN MY STORE OR THAT.
PEOPLE DON'T REALLY COME IN WITH
GOOD CREDIT OR THEY TRIED OTHER
THINGS IN. AND I'M I HAVE A
CHALLENGE COMMUNITY A CHALLENGE
COMMUNITY THAT MANY PEOPLE ARE
UNBANKED OR HAVE NEVER HAD A
TRADITIONAL LOAN OR DON'T KNOW
THEIR CREDIT SCORE OR DON'T KNOW
WHERE THEY GO. AND YOU CAN'T GO
TO THE CORNER BECAUSE THEY DON'T
EXIST.
RIGHT AND SO WHEN EVERY OTHER
BLOCK IS SOME SORT OF PRODUCT
THAT.
HAS AA LOAN PERCENTAGE THAT
THAT PUTS PEOPLE INTO A CYCLE OF
POVERTY.
CERNAN OBVIOUSLY SO I'M JUST
KIND OF TRYING TO FIGURE OUT
WHY.
OR OR WHITE WE DON'T HAVE HER
DAD AND I HEARD FROM THESE
QUESTIONS TOO I'M GETTING A
LITTLE.
DISCOURAGE THAT THIS INDUSTRY
THAT SO HIGHLY REGULATED AND.
IN SO MANY STATES.
HAS NO HARD DATA ON WHAT'S
REALLY HAPPENING OR MAYBE THERE
IS DATA THAT WE JUST DON'T HAVE
ACCESS TO TO TELL US. YOU KNOW
THIS MANY PEOPLE COME IN WITH
THIS CREDIT SCORE THAT THESE ARE
THE PEOPLE WHO TAKE CARE OF AYE
I'M CONCERNED THAT A LOT OF. I'M
GOOD HARD WORKING FOLKS TO HAVE
DECENT CREDIT SCORES IN MY
COMMUNITY ARE PAYING THESE HIGH
RATES FOR PEOPLE WHO REALLY
SHOULDN'T BE OFFERED ALONE IN
THE FIRST PLACE.
.
AND SO OBSCENITIES RIGHT THIRTY
PERCENT MIGHT BE DEFAULTING BUT
THAT MEANS SEVENTY PERCENT ARE
NOT.
AND THEY'RE STILL PAYING THOSE
RATES IN THEIR PAIN FOR A VERY
LONG TIME SO I'M JUST I'M I'M
TRYING TO GET AS MUCH
INFORMATION IT'S BEEN EXTREMELY
FRUSTRATING FOR ME. AND I GET
DIFFERENT AMOUNTS OF INFORMATION
FROM DIFFERENT FOLKS AND I HAVE
A QUESTION FOR YOU TO BUT NOT
YET.
I JUST SO IS THIS DATA IS THERE
A REASON WE CAN'T LIKE.
HAVE THIS DATA DOES IT NOT
EXIST.
BUT I THINK IT'S AN EXCELLENT
QUESTION MISS FLETCHER THAT'S
WHY I THINK ALICE LET'S LET'S
ARE THINKING SORRY SIGN OF THAT
IT WOULD BE.
WE WOULD ADVOCATE FOR MORE DATA
I MEAN NOT LIKE AND THE SOME OF
THE THINGS WE MENTIONED THAT
THERE'S DISCLOSURES THE INDUSTRY
DEATH ONLY ONCE ADDITIONAL IF WE
IF REQUIRE ADDITIONAL
DISCLOSURES OF SOMEBODY COMES IN
AND THEY NEED TO BE REFERRED TO.
IF THEY'RE PRIME CUSTOMER IN
THEIR PRIME LOANS AVAILABLE OR
NOT AVAILABLE THE INDUSTRY WOULD
LOVE TO LOOK AT WILL LOOK AT
THINGS LIKE THIS I THINK THESE
ARE THE TYPES OF. OF.
DATA POINTS THAT UNFORTUNATELY
IF THIS BILL GOES FORTH AS
WRITTEN WE'RE NOT GONNA TALK
ABOUT THIS ANYMORE IT'S JUST TO
RECAP.
IT'S DONE. THAT DICK THE THE
LONE TWENTY WILL BE AVAILABLE AT
OUR RATES ARE ANY RATES PRETTY
GOOD FOR A LOT OF OUR LENDERS
ARE JUST GONNA STOP OFFERING ALL
ENDING.
I'M INTO MY QUESTION TO TO THE
ADVOCATES ARE AYE I HEAR A LOT
IN THIS IS I HAVE A HARD TIME
WITH THIS ARGUMENT THAT THINGS
IF IF. THE MARKET GOES DOESN'T
WORK OUT CRACKED.
THE WAY WE WOULD HOPE THAT.
PEOPLE ACTUALLY LEAVE.
AND AND THERE ARE PEOPLE WHO
WILL NOT BE ABLE TO HAVE LOANS.
IF IF I HAVE.
VERY BAD CROSSWORD NO CREDIT
SCORE IN MIAMI. MOTHER DIES
WHERE MY GETTING A LOAN TED BURY
HER.
CAN CAN I JUST ASK CHAIR WOMAN.
IF MY COLLEAGUE FROM THE
CONSUMERS UNION AND MISTER KALRA
AS TO TO HAVE ANOTHER ADVOCATE
IF THERE'S GONNA BE MORE
QUESTIONS AS WELL OR.
JUST A LITTLE OUTNUMBERED WITH
THE INDUSTRY ORDER ABOUT
MIGRATION STRICTLY IT YOU DON'T
KNOW I DON'T KNOW IF YOU CAN
LIVE IN ANSWERS WELL I'M JUST
KNOW THAT I I HAVE AN ANSWER FOR
THAT. SO WE CERTAINLY CAN HAVE A
BALANCED.
FOLKS ON ON THE DIET SO IF IF
ONE OF YOU WOULD LIKE TO LEAVE
WE CAN ASK SOMEONE AND AT THIS
MOMENT TIME I THINK THE QUESTION
WAS YET THROUGHOUT IT TYPICALLY
AND HOPES TO SUSAN FROM
CONSUMERS UNION.
.
SO YEAH BUT WAIT I'M NOW I'M
LOOKING AT DAD ON THE OTHER SIDE
IN THE STATES WHERE THERE HAVE
BEEN CAPPED HOW DO WE KNOW THAT.
.
SOME PEOPLE AREN'T JUST.
GOING UNDERGROUND BASICALLY TO
TRY TO GET ENOUGH MONEY TO
FULFILL WHAT OUR BASIC NEEDS AND
SOCIETY SURE AND AND THAT'S
THAT'S A WONDERFUL POINT BECAUSE
FOR YOU KNOW I'VE I'VE WORKED.
FOR MANY YEARS FOR THE LATINO
COMMUNITY AND TWENTY PERCENT OF
LATINOS HAVE A ZERO CREDIT SCORE
OR NO CREDIT SCORE. AND THAT'S
NOT BECAUSE THEY DO NOT KNOW HOW
TO MANAGE THEIR MONEY IT'S
BECAUSE THEY'RE PAYING CASH.
SO THIS IS THIS IS THE ISSUE WE
HAVE IS THAT THE STORES ARE IN
OUR COMMUNITIES AND AND
TARGETING THEM AND SO EXACTLY TO
YOUR POINT NOT BUT I WANT WHAT I
WANT. SPECIFICALLY I'M ASKING
HOW DO WE KNOW WHAT HAPPENS IN
THE STATES WHERE WE HAVE FEWER
LENDERS NOW AND IN TIMES OF DIRE
STRAITS WITH THAT WHICH I ALSO
SO. ALIKE AS I'M I'M FROM
MARYLAND WHICH IS A STATE. HAS
EVER HAD PAYDAY LOANS LOW INCOME
FAMILY AND WE WHAT YOU HEAR
ABOUT ARE THE NON PROFITS
BECAUSE OF THE MARYLAND IS THE
BIGGEST NONPROFIT THAT. HAS
RESOURCES TO HELP FAMILIES
CATHOLIC CHARITIES MY MOM WAS
GIVEN A SECURED CREDIT CARD SHE
STARTED WITH ENCYCLOPEDIAS AND
YOU START UP YOU HOW MANY
IMMIGRANTS ARE THERE IN MARYLAND
IT'S A HUGE IMMIGRANT POPULATION
MOSTLY FROM ALL SALVADOR AND
CENTRAL AMERICA.
AFRICAN AT THIS SCALE TO
CALIFORNIA.
I I I DON'T KNOW THE NUMBERS
BUT THERE I'M GONNA ASK HIM AND
JYJ.
IF WHAT RATIO PRICE RATIO WASN'T
JUST NOTICE MOST THEY A BILL SO
SO I I APPRECIATE CATHOLIC
CHARITIES I'M JUST TRYING TO GET
AGAIN DATA NOW TO UNDERSTAND IN
A STATE LIKE CALIFORNIA THAT HAS
A.
TRULY HUGE BOTH PERCENTAGE
HIGHER PERCENTAGE AND.
SHEER NUMBER THAT MARILYN OF OF
IMMIGRANTS IN AND PAINT.
IN PARTICULAR YOU KNOW WHERE
WHERE WHERE NOT.
WE HAVE WE DON'T HAVE ENOUGH
RESOURCES IN THE NONPROFIT WORLD
TO TAKE CARE OF OUR ENTIRE
COMMUNITIES I'M JUST TRYING TO
GET AGAIN LIKE A HEARING. OF THE
STATES THAT HAVE.
CAPPED.
THESE PROGRAMS HAVE CAPPED THE
PERCENTAGE A NIGHT AND I HEARD
AT ONE POINT WAS THIRTY FOUR
STATES ANOTHER TWENTY ONCE I'M
NOT EVEN SURE HOW ME STATES IT
IS.
ARE THEIR STATES.
THAT ARE SIMILAR TO CALIFORNIA
IN SIZE IS IT NEW YORK IS A
TEXAS NEW YORK. NEW YORK HAS IT
HAS AS A TWENTY FOUR PERCENT
RECAP NEW YORK HAS A TWENTY FOUR
PERCENT CAP OKAY IS THERE. DATA
ON WHAT IMMIGRANT COMMUNITIES IN
NEW YORK.
RELY UPON.
OF CERTAIN I WOULD HAVE TO HOW
LONG HAS AYE CAPTAIN IN PLACE
OTHER THERE'S NEVER BEEN PAID IN
THE NAME ALLOWED IN NEW YORK.
OKAY BUT WE'RE NOT JUST TALKING
ABOUT PAYDAY LENDING ALL I CAN
ABOUT THE ENTIRE RIGHT SO USERS
SO USUALLY USURY LAW HAS NOT
OUT.
TO ALLOW PAYDAY LOANS YOU
ACTUALLY HAVE TO.
IT HAD BRING IN A LAW TO ALLOW
THE PAYDAY LENDING IN THE HIGH
COST LENDING TO TO FLOURISH SO
NEW YORK HAS NEVER HAD IT SO SO
IF I NEED TO BORROW TWENTY FIVE
HUNDRED DOLLARS IN NEW YORK AND
I'M UNBANKED WHAT A WHITE DEL.
SO AGAIN SO THE NONPROFITS THE
CREDIT UNIONS STARTING WITH A
SECURE CARD.
AND THAT'S TOUCH JUST THERE'S
THE CIRCLE LOANS BUT FOUND US
THERE'S A LOT OF THINGS THAT
COMMUNITIES TO COME TOGETHER
DURING THE DHAKA. CRISIS ALL
THE.
MEXICAN CONSULATES WERE GIVING
AWAY GRANTS THERE WAS MISSION
ASSET FUND OUR CREDIT UNION THE
SELF HELP FEDERAL CREDIT UNION
WE ACTUALLY TURNED OUR LOANS
WITH ZERO PERCENT.
EIGHT INTEREST RATE LOAN TO MAKE
SURE THAT WE WERE ABLE TO TO
REACH THE PEOPLE THAT NEEDED THE
EMERGENCY DOC ALONE SO WHAT'S
THE CAP ON. I'M SORRY AND I'M
STILL I FEEL LIKE WE'RE TALKING
ABOUT DIFFERENT THINGS
IT WHAT IS THE CAP ON IF I.
NOT ME BUT YOU NOW FIND WANTED
TO GO GET ALONE AND I'M IN NEW
YORK AND I WON A FIVE THOUSAND
DOLLAR LOAN WHAT WHAT IS. IT AT
EAST MONTANA PAYDAY LENDING
OBVIOUSLY THAT'S TOO HIGH BUT
WHAT IS IS OUR CAP WELL HERE
HERE'S EXECUTIVE THERE'S A CAP
IN THEIR SOME GOOD DATA TO KNOW
WHAT HAPPENS IF PEOPLE CAN'T GET
WHERE THEY GO. AND I'M GONNA USE
THE EXAMPLE FROM THE NEW YORK
STATE DEPARTMENT OF FINANCIAL
SERVICES.
WHO ORDERED THIRTY FIVE LENDERS
TO SEIZE LANDING IN STATE?
TO STATE RESIDENCES AND THIS IS
IN AUGUST OF TWO THOUSAND
THIRTEEN FOR ACTUALLY LAWSUITS
BROUGHT BY THE ATTORNEY GENERAL
AS WELL. SO PEOPLE SO HERE'S THE
POINT.
IF LOANS GO AWAY THE DEMAND DOES
NOT GO AWAY. THERE'S A SMALL
PERCENTAGE THAT MAY FIND OTHER
OTHER IN STATE OPTIONS BUT THE
VAST MAJORITY. YOU HAVE LENDERS
COMING IN FROM OUT OF STATE.
THESE LENDERS ARE NOT LICENSED
BY THE STATE AND ARE NOT
REGULATED BY THE STATE THE
CONSUMERS CAN GET THE LOANS
THEY'RE JUST NOT. UNDER THE
SUPERVISION OF STATE AUDITORS
AND REGULATORS WHAT IS A CAP AT
NEW YORK'S I'M SORRY I BELIEVE
IT'S THIRTY SIX PERCENT BUT I I
I'M NOT EXACTLY SURE BUT IT
LEAVES THIRTY SIX ALL I KNOW IS
THAT ART FROM OUR INDUSTRY DOES
NOT LEND IN CITY AND. IN THE
STATE OF NEW YORK BUT WE DO KNOW
THAT THERE ARE UNLICENSED.
NON STATE REGULATED LENDERS WHO
ARE LANDING IN THE STATE OF NEW
YORK NOT YOU KNOW THAT BASED ON
THAT IS THAT HAPPENING
CALIFORNIA. WELL YES WE DO WE
HAVE TO KNOW THAT WILL RIGHT NOW
AND THE NICE THING HERE IN
CALIFORNIA IS THAT WE DO HAVE A
RIGHT WE DO HAVE REGULATED
LENDERS.
LENDERS ARE REGULATED WE CAN
TALK ABOUT THE INTEREST RATE WE
STILL HAVE AND WE HAVE A HELL
AND LICENSED.
LENDERS FROM OUT OF STATE DELPHI
SO IT HERE'S A PROXY WE CAN TALK
ABOUT HOW DO WE GET TO THAT
BECAUSE THIS IS NOT FOUND IN THE
DEPARTMENTS AND REPORTING THAT'S
WHY WE'RE SAYING WE NEED MORE
DATA BEFORE WE MAKE SUCH A
SERIOUS. DECISION TO IMPOSE A
RATE CAP IN AND AND THAT'S YOU
KNOW FROM THE STORIES WE
MENTION%
IN STATES THAT HAVE DONE THAT
WHAT HAPPENS.
SO THAT'S WHERE WE CAN GET
ADDITIONAL DATA ON THIS AND THAT
MAYBE THAT'S SOMETHING I KNOW
ONE PAYDAY THE. YEARS AGO THE
PART WAS ASKED TO STUDY WE
HAVEN'T DONE THAT UNDER CFL.
CAN.
CAN I JUST AB ONE LAST THING TO
IT SO BICU DID DO A REPORT IN
IN STATES THAT.
THAT DON'T HAVE THAT DO HAVE
RATE CAPS AND THERE IS AN
ARGUMENT THAT THEY MOVE TO
UNREGULATED UNLICENSED LENDERS
AND PEW FOUND THAT THAT WAS
UNTRUE.
AND HERE IN CALIFORNIA TWO
YEARS AGO THERE WAS A SUPREME
CALIFORNIA SUPREME COURT RULING
AGAINST US THAT. ARE THERE ARE
TRIBAL LENDERS WHO CAN DON'T.
HAVE TO FOLLOW THE RECAP BUT
THE SUPREME COURT RULING MADE IT
SO THAT THE LENDERS HAVE TO
PROVE THEIR TRIBAL CONNECTIONS
AND MAKE SURE THAT.
PAYDAY LENDERS ARE NOT JUST YOU
KNOW ATTACHING THEMSELVES TO THE
TRIBAL COMMUNITIES ALL THAT.
WHICH WE HAVE TROUBLES ARE
LENDING INCOMPLETE PICKUP. ABOUT
YEAH I UNDERSTAND THAT WHEN I
THOUGHT ON AT LIKE SEVEN JANET
MAYBE I. WILL RESPOND TO THEM
YEAH LOST TOUCH AND THEN AND I
KNOW WE HAVE SEVERAL OTHER
MEMBERS KNOW THAT TICKET THAT'S
OKAY AND I THINK AT THE AUTHOR
HAS. A RESPONSE TO YOU WE HAVE
SEVERAL OTHER MEMBERS WELL AND
TO ADDITIONAL BILLS THAT WILL BE
HEARD
YES. SO THAT LOOKED AT ME THAT
THE ARGUMENT FOR ANY KIND OF
REGULATIONS THAT WILL THERE'S
COMING ON REGULAR MARTIN PEOPLE
GONNA BREAK THE LAW.
YES THAT COULD BE ARGUED THAT WE
MAY BUT THE REALITY THAT WHY IN
PLACES LIKE NEW YORK.
THEY HAVE THESE OTHER ENTITIES
THAT ARE STEPPING IN IS BECAUSE
THEY'VE NEVER HAD.
SCOURGE OF THESE.
ALL OF THESE HIGH INTEREST RATE.
BUT ENJOY LENDERS AND SO GREAT
YOU KNOW WILL HAVE ON REGULAR
COME IN BUT THE REGULATED ONES
ARE ALREADY CHARGED THE SAME
WITH UNREGULATED WHO IS GOING TO
CHARGE THE LITERAL HOW WE REALLY
BENEFITING.
THE PEOPLE OF CALIFORNIA
THE REALITY IS THAT CHANGE
DOESN'T HAPPEN OVERNIGHT.
BOB RIGHT NOW YOU KNOW THAT
THEY'RE THERE ISN'T ECONOMIES OF
SCALE IN TERMS OF HOW MUCH WE
HAVE TO ADJUST OUR MARKET. THERE
TWICE MANY CFL LENDERS IN THE
ARE MCDONALD'S IN CALIFORNIA
OBVIOUSLY IS TALKING OVERNIGHT
AND SENATE INCUMBENT UPON US.
TO MAKE SURE THAT WE CONTINUE TO
DO WE CAN'T PROTECT CONSUMERS UP
BUT THE REALITY IS THAT WHEN
EVEN IF THEY DON'T PEOPLE THAT A
LOT OF FOCUS ON DEFAULT. HERE
THEY DON'T DEFAULT WE HAVE TO GO
TO FRIENDS AND PAWN SHOPS NOT
JUST TO PAY BACK THE LOAN. BUT
THEN I'LL HAVE A THREE THOUSAND
ALONE THE CONDUCTING EIGHTEEN
TWENTY TWENTY FIVE THOUSAND
DOLLARS FOR THE GET STRING
ALONG.
AND WE DO HAVE DATA THAT BIGGER
PUBLISHER THROUGH DPO DI BILL
AND THEN LET ME MAKE ANOTHER
POINT.
THE INDUSTRY CAN GIVE US DATA
ADVOCATES BATTER DATA THEY HAVE
THE NUMBERS.
WE DON'T HAVE THE NUMBERS NOT
AMONG THE NUMBERS THAT THEY
WOULD LIKE TO SEE.
THEY HAVE THE NUMBERS THAT WOULD
LIKE TO SEE.
LET'S MAKE THAT VERY CLEAR AS
WELL THAT WE ARE TALKING ABOUT
DATA THE DATA DOES EXIST WE'RE
NOT PRIVY TO ALL OF IT. BUT WE
DO HAVE SOME DATA
AND SOME OF THE DATA INDICATES
WE LOOK AT THE THE. LENDERS
THERE ARE.
THERE ARE A VAST MAJORITY
LENDERS THAT DO NOT.
DO NOT GIVE LOANS BELOW SEVEN
PERCENT WHEN I SEE SEVENTIES
ACTUALLY SEVENTY NINE EYES MAYBE
THEY'LL GET BELOW NINETY I DON'T
KNOW BUT. THAT THERE OF. THE
IMPASSE OF NUMBER THAT VERY
RARELY GIVE BELOW.
AND SO SOME OF WHAT'S GOING DOOR
AND COULD BE ELIGIBLE FOR SIXTY
FIVE.
HT FIFTY.
THE LUCK OF THE THE OTHER TO
MAXIMIZE THEIR PROFITS
AND THAT'S PART OF THE PROBLEM
IS THAT THERE'S NOT ALL LINEMAN
OF INTEREST BETWEEN THE
CONSUMERS. AND THESE LENDERS NOW
THE ONES THAT ARE OPERATING AND
THERE'S A NUMBER OF THEM YOU
KNOW ONE MAIN.
OPPORTUNITIES OF THERE'S A FEW
FROM HERE THAT THE LOANS ARE
ALL.
AND FORTY PERCENT OR UNDER.
NOW DOES THAT MEAN THAT THERE
ARE SOME THE FOLKS THAT ARE
GOING TO GET ACCESS TO CREDIT
WELL YES AND THAT'S WILL BE PART
OF OUR. JOB TO ENSURE THAT WERE
MAKING SURE THEY GET ACCESS TO
RESPONSIBLE CREDIT. NOT ACCESS
TO TRIPLE DIGIT RATES THAT ARE
GOING TO HAVE THEM GOING THERE'S
DOWNWARD SPIRAL OF DEBT. AND SO
DO WE HAVE WHAT NEW YORK CAST
TODAY OF COURSE NOT BECAUSE NEW
YORK'S NEVER HAD THESE LOANS CAN
WE HAVE THAT SOMEDAY YES
WEEKEND.
WE CANNOT THAT SOMEDAY IF WE
MAKE A COMMITMENT AND DON'T FEEL
THE POOREST PEOPLE IN OUR
COMMUNITY.
TIME AND AGAIN WHEN IT COMES.
THANK YOU AND NEXT WE HAVE
ASSEMBLY MEMBER CHEN FOLLOWED BY
CALDERON THAN.
BUT YOU MADAM CHAIR OF THIS
QUESTIONS FOR A THE OPPOSITION
ALSO PUT SPEAKER.
ON THE AUTHOR. ENTERS OF RACE
FOR THE ONLINE LENDERS.
LICENSE AND A LICENSE WHERE THE
RACE FOR THE LICENSE ON ONE
WONDERS AND HOW DO THEY COMPARE.
UNLICENSED ONLINE WONDERS.
WHAT WE LEARNED ONLINE AS I SAID
OUR UNSECURED RATE HAS A
HUNDRED%
AND THIRTY TWO PERCENT APR?
FROM THE. TIME I DON'T KNOW IN
GENERAL WHAT THE TRIBAL LENDERS.
CHARGE I THINK THEY HAVE A LESS
EFFICIENT MODEL LIKELY CHARGE A
HIGHER A PR. THE ILLEGAL
OFFSHORE LENDERS WILL CERTAINLY
CHARGE A HIGHER A PR.
MY FAULT QUESTION IS.
I'VE BEEN TOLD.
MOTHER QUICKLY AND CORRECTLY
THAT THIS BILL TREATS ALL LOANS.
THE SAME INTERNET SECURITY
UNSECURED THAT WAS TOLD THAT
THERE MIGHT BE A RISK ASSOCIATED
WITH THAT.
ON THE WANTS TO HEAR FROM THE
AUTHORED THAT'S TRUE AND ALSO
THE SECOND THING IS WHATEVER
RISK PROFILE ARE YOU SAYING THAT
IT MIGHT AFFECT THE CONSUMER.
SO THE SO WHY DOES THIS TREAT
SECURED UNSCREW LEADING THE SAME
MANNER IT'S BECAUSE IN EFFORTS
DIRECTLY ON SECURE LAWS BEEN
PURSUED OTHER STATES
MANY LENDERS SPECIALLY THOSE WHO
CHARGE. INTEREST RATES OF A
HUNDRED PERCENT OR HIGHER SIMPLY
MOOD REQUIRE THAT ALL THEIR
LOANS BECOME SECURE BY AUTO
TITLE
AS A RESULT MANY FAMILIES
OPPONENT OF THE DEATH TRAP AND
LOSING. END UP LOSING THEIR
VEHICLES ARE PAYS LIENS ON THE
PROPERTY RATTLING ONE WITHOUT
THE OTHER ONLY INCENTIVIZE
FURTHER PREDATORY PRACTICES.
SO YOU'RE GOING TO HAVE MORE
PEOPLE LOSE THEIR VEHICLES ARE
GONNA HAVE MORE PEOPLE THAT PUT
UP OTHER TYPES OF COLLATERAL AND
THEY'RE GONNA LOSE IT. SO
DOESN'T TOP THE PRACTICE AND
CHANGES THE BAY THE NATURE OF.
FIFTH SOMETHING OF SO IF THEY'RE
IF IT WIN WIN CALIFORNIA PASSES
A RECAP OF FOR THE ONES THAT ARE
ON LICENSE THE ATTORNEY GENERAL
DOES HAVE THE RIGHT TO MAKE
THOSE AND AND WE'VE SEEN IN
STATES WHERE THEY ARE NOW AND
VOIGTS IF YOU GIVE TO A. A A
BORROWER IN A STATE WITH A RECAP
AND IT IT IT DOES NOT FOLLOW THE
RECAP THEY CAN BECOME NULL AND
VOID.
ANY OTHER QUESTIONS.
WHAT WHAT WHAT I WOULD SAY IS
THAT WITH THE RATE CAPS WANT YOU
TO PUT IN IT? YES THE
CAN WILL CONSUMERS POTENTIALLY
GO ONTO A WEBSITE THAT IS NOT
REGULATED THAT TECHNICALLY YES
NOW BREAKING THE LAW THAT DOES
HAPPEN.
I MEAN DID A LOT OF THESE
ANECDOTAL THAT WE KEEP HEARING
ABOUT BUT THE.
LIKE THAT WHAT WE SAID EARLIER
TESTIMONY THE STATE REGULATORS
OF THE STATE'S I'D LIKE TO KNOW.
IF IF OUR STATES REACHED OUT FOR
THOSE STATE REGULATORS MAYBE
THAT'S SOMETHING THAT THE
COMMITTEE SHOULD LOOK AT AND
TALK SPECIFICALLY TO THOSE OTHER
REGULATORS TO SEE. WHETHER OR
NOT THEY ARE HAVING THAT
EXPERIENCE BECAUSE THAT'S WHAT
WE HEAR AND WE DEFINITION THE
TRIBAL LENDERS ARE LENDING INTO
STATES BECAUSE THEY'RE NOT
REGULATED BY CALIFORNIA.
THANK YOU CAN ASSIGN MACABRE.
THANK YOU MADAM CHAIR I.
COME FROM EAST LA COUNTY I
REPRESENT.
ARE RELATIVELY LOW INCOME
COMMUNITIES.
I REPRESENT SOME OF THE POOREST.
COMMUNITIES IN THE SAN GABRIEL
VALLEY.
AND I BELIEVE THAT PEOPLE HAVE
THE RIGHT TO ACCESS CAPITAL WHEN
THEY NEED.
HAVE ACCESS TO THAT CAPITAL.
AND.
YOU KNOW ONE OF THE THINGS THAT.
I'VE
KEPT TRYING TO ASK BUT I I DON'T
FEEL LIKE I GET. A CLEAR ANSWER
ON AS YOU KNOW IN TERMS OF
DETERMINING YOUR PROFITS YOU
SAID YOUR COMPANY MAKES.
FIVE POINT ONE PERCENT.
PROFIT.
HOW WERE YOU DETERMINING THAT
PROVIDENCE AT FIVE POINT ONE
PERCENT OF THE TOTAL DOLLAR
AMOUNT THAT YOU LENT OUT?
THAT'S ACTUALLY AT ALL ON OUR
TWO THOUSAND SEVENTEEN FINANCIAL
DISCLOSURES WHERE PUBLIC COMPANY
AS IS TO OTHER VERY LARGE
LENDERS IN THIS MARKET SO AS FAR
AS LOOKING AT DATA THAT HAS A
FULL PICTURE OF OUR LENDING
OPERATIONS INCLUDING ALL OF OUR
EXPENSES IN OUR REVENUES. THOSE
ARE CERTAINLY AVAILABLE IN FAR
MORE.
ACCURATE THAN THE DV ó
REPORTS
SO THAT FIVE POINT ONE PERCENT
IS OUR NET PROFIT MARGIN ALL IN
FOR OUR GLOBAL OPERATIONS AND
AND DAY IN OUR FINANCIAL
DISCLOSURES. SO IF IT'S BASED
OFF OF HOW MUCH YOU'VE LET OUT
HOW MUCH MONEY DID YOUR COMPANY
LAND.
THROUGH THESE LOANS.
LYNN TWENTY SEVENTEEN.
A IN TWENTY SEVENTEEN WE MADE A
LITTLE BUT OVER SIX HUNDRED
MILLION AND LOAN ORIGINATIONS IN
CALIFORNIA INCLUDING ALL THREE
OF OUR PRODUCTS PAYDAY.
UNSECURED ENTITLEMENTS SO THAT
SIX HUNDRED MILLION CALIFORNIA
ALONE FIVE PERCENT IS THIRTY
MILLION.
THE COMPANY MAY THIRTY MILLION.
IN TWENTY SEVENTEEN AND THIS
MARKET.
BETWEEN TWENTY FIVE HUNDRED AND
TEN THOUSAND DOLLARS THE LOAN
THE LANDING IS TWO POINT ONE
BILLION. AT ROUGHLY THAT'S
HUNDRED AND FIVE MILLION SO HE
GETS.
I MEAN.
IT'S EASY TO SAIL WILL MAKE FIVE
PERCENT.
BUT THAT FIVE PERCENT REPRESENTS
A PRETTY LARGE AMOUNT OF MONEY.
AND IN ON AND I THINK IT SOUNDS
SHOCKING.
FIRST WHEN YOU HEAR ALL THAT
SOUNDS LIKE A LOW MOUNTAIN. A
LOW DOLLAR AMOUNT.
ARE OR OR A LOW PERCENTAGE BUT
THEN WHEN YOU LOOK AT THE ACTUAL
DOLLAR AMOUNT.
I'M IN THAT IS THAT THAT IS A
SUBSTANTIAL AMOUNT OF MONEY
THREE MILLION DOLLARS FOR ONE
COMPANY AROUND FIVE MILLION
DOLLARS FOR THE INDUSTRY WHEN IT
COMES TO THESE LANDS WITHIN A
GIVEN YEAR. AYE BECAUSE THIS TWO
POINT ONE BILLION YOU KNOW I
DON'T THINK YOU'LL FIND ANY
MEMBER ON THIS DIET THAT WILL
DISAGREE WITH A. WITH A
BUSINESSES ABILITY OUGHT TO EARN
A PROFIT OFFER PROVIDING A
PRODUCT. I THINK WHAT WE'RE
TRYING TO FIGURE OUT.
WITH WHAT THIS PROCESS IS YOU
KNOW COMMON WAS MADE EARLIER
THERE'S JUST NOT ENOUGH
INFORMATION AND WE NEED MORE
TIME THE MORE TIME.
.
BUT THIS IS AN ENGLISH THERE'S
AND IT ISN'T A NEW ISSUE ARE
THIS ISSUE HAS BEEN BROUGHT
ABOUT HOW MANY TIMES.
WE'VE BEEN WORKING ON THIS FOR
HOW MANY YEARS NOW.
AND YOU KNOW I TELL A LOT OF
BUSINESSES.
OR OR OR ORGANIZATIONS ARE
INDUSTRIES THAT COME TO MY
OFFICE.
YOU KNOW BEING PROACTIVE ONLY
SERVE YOU WELL IN THE FUTURE
BECAUSE EITHER YOU'RE GOING TO
IMPLEMENT THE CHANGES ON YOUR
OWN AND COME UP WITH YOUR OWN
FIXES.
AND COME UP WITH.
WITH OF WORLD THAT YOU CAN
OPERATE WITHIN THAT YOU ARE THAT
THAT YOU LIKE.
OR AT SOME POINT TIME WE'RE
GONNA DO IT FOR YOU AND YOU'RE
GONNA LIKE BUT WE DO FAR LESS
THAN WHAT YOU DO ON YOUR OWN BY
BEING PROACTIVE. AND AND I AND
AND I I KNOW ME PERSONALLY.
OUT WHAT I I I DON'T WANT TO BE
LEADING MY CONSTITUENTS TO
INTO A POSITION WHERE THEY'RE
HAVING TO TURN TO ONLINE LENDERS
THAT ARE AND SECURED.
YOU KNOW I THINK WE'RE LOOKING
AT.
ALL PREDATORY ASPECTS WHEN IT
COMES TO.
A LOT OF THIS INDUSTRY. HOT AND
NOT TO SAY THAT HAVING A
BUSINESS AND BEING A BUSINESS
OWNER MAKES YOUR PREDATOR BUT I
THINK.
YOU KNOW THERE IS CONCERN AND
THERE IS A SIGNIFICANT STATE
INTEREST.
WHEN IT COMES TO WHEN YOU'RE THE
ONLY PLACE TO GO.
IS IT OKAY TO CHARGE WHATEVER
INTEREST IN RATE YOU WANT. IS IT
OKAY TO HAVE A HUNDRED THIRTY
TWO PERCENT INTEREST RATE
AND SO THE GETS IMPORTANT TO TO
TO UNDERSTAND QUE WILL HOW DOES
THAT FACTOR IN WHEN YOU TAKE A
LOOK AT. YOU KNOW YOU'RE YOU'RE
ARE YOU ARE YOU KNOW YOUR YOUR
YOUR FACILITY COSTS IN RENT.
AND YOU'RE AND AND YOU'RE AND
YEAH YOU NEED TO COST FOR LABOR.
TO PAY YOUR EMPLOYEES YOU KNOW
WHAT IS YOU KNOW THAT THE ENDING
AMOUNTS YOU KNOW WHAT IS THE
COMPANY MAKING IN THE AND IN.
AND AND I THINK THAT FOR US.
HERE
WHAT WE WANT IS TO CREATE A
MARKET THAT EXISTS THAT IS
REGULATED.
BUT ALSO IS FAIR AND EQUITABLE
SO THAT I HAVE CONFIDENCE
THERE WERE ALL OF THE STORES IN
ALL OF THESE DOORS THAT ARE IN
MY DISTRICT THATI DRIVE PAST
EVERY SINGLE DAY THAT I'M HOME.
THAT MY CONSTITUENTS ARE GOING
IN THERE NOT GETTING SCREWED.
BECAUSE THEY DON'T KNOW ANY
BETTER AND THEY DON'T KNOW WHERE
ELSE TO GO.
THIS ISN'T ABOUT HERE'S AN
INDUSTRY NEAR THE BOOGIE MAN AND
YOU'RE THE BAD GUY DOES NOT AT
ALL. MY FATHER HAS DONE A LOT OF
WORK HE'S TO SIT ON THIS DIET A
BE A MEMBER. OF THIS HOUSE A
BOTH HOUSES
WORKED A LOT ON THIS ISSUE AND
HE ALWAYS BELIEVED ARE IN THE
ABILITY FOR THOSE IN LOW INCOME
COMMUNITIES TO HAVE ACCESS TO
CAPITAL WHEN THEY WOULDN'T HAVE
IT AN IMMIGRANT COMMUNITIES WHEN
YOU. YOU KNOW YOU COULDN'T
BANKING AND YOU NEED THE MONEY
AND YOU COULDN'T FOR THINGS LIKE
PAYING FOR FUNERAL. AND I DON'T
WANT TO SEE THAT DISAPPEAR BUT I
ALSO I WOULD SAY THIS.
I'M ABOUT WHAT'S FAIR.
I DON'T THINK ANYBODY DESERVES
ANYMORE OR ANY LESS THAN ANYBODY
ELSE.
I AND I THINK IF YOU HAVE THE
RIGHT AS A BUSINESS TURN MONEY
BUT I THINK IT NEEDS TO BE FAIR
BASED ON WHAT YOU'RE ASKING.
OFF FROM THESE MEANT THESE
INDIVIDUALS TO BE PAID BACK MOVE
FORWARD BECAUSE WE WANT TO
KNOW. HOW WHAT IS THAT LOOK LIKE
I DON'T THINK YOU KNOW FROM THE
QUESTIONS ARE BEING ASKED TODAY
IT'S REALLY CLEAR? WHAT THAT
LOOKS LIKE IT'S ARE STILL MEN
FROM NATION THAT'S MISSING?
ARM AND AND AND SO WHAT I REALLY
WANT AND ARE WHAT I WOULD REALLY
LIKE TO SEE IS OVER THE NEXT.
COUPLE WEEKS AND MONTHS AS WE
MOVE THROUGH THIS PROCESS.
.
TO GET MORE TO OPPOSED POSITION
WHERE WE'RE TRYING TO DO THE
RIGHT THING BOTH THE INDUSTRY
AND THE PROPONENTS.
AND TO BE REASONABLE IN THE
ASKS BECAUSE WE REALLY WANT TO
FIND SOMETHING I'M COMMITTED TO
FINDING SOMETHING THAT WORKS FOR
BOTH THE INDUSTRY. AS WELL AS ON
MY CONSTITUENTS IS REALLY
IMPORTANT TO ME AND AND AND AND
I I AND I NEED TO KNOW THAT.
THEY'RE NOT BEING UP PUT INTO
INTO A TERRIBLE POSITION JUST
BECAUSE THEY HAVE NOWHERE ELSE
TO GO.
I AND SO I I WON I THINK THE
AUTHOR FOR THE WORK ON THE
COMMITMENTS THAT HE'S MADE TODAY
I ALSO REALLY WANT TO THANK OUR
CHAIR BECAUSE I THINK THERE
CHAIR IS TAKING A LOT OF TIME TO
TRY TO UNDERSTAND THIS INDUSTRY.
AND HAVE ARE ARE REALLY HONEST
DIALOGUE AND ENCOURAGE YOUR.
YOUR COMMITMENT TO WORKING WITH
BOTH THIS CHAIR AS WELL AS THE
AUTHOR OF THIS BILL. OUGHT TO
MAKE SURE THAT IS THIS MOVE BILL
MOVES ALONG WHICH I HOPE IT DOES
TODAY.
BECAUSE THAT'S THE ONLY WAY WE
CAN GET ANY TYPE OF ANSWER TO
THE CONVERSATION OUT OR OR ANY
SOLUTION TO THE CONVERSATION IS
A CONTINUE CONVERSATION.
ON THIS ON THIS MATTER.
BUT AYE BUT I HOPE THAT
EVERYBODY'S CONTINUES TO ACT IN
GOOD FAITH.
A BECAUSE WE NEED TO FIND A
SOLUTION TO THIS ISSUE I AM IS
BETTER TO DO IT ALL TOGETHER
RATHER THAN ONCE I GETTING
EVERYTHING THAT THEY WANT OTHER
SIDE.
DID SIGN A CLOSE UP SHOT OF
GETTING A SHOPPER GETTING
NOTHING SO I THINK YOU AND WITH
THAT I MOVE THE BILL.
WE HAVE A MOTION AND BY
ASSEMBLYMEMBER CALDERON INTO
SECOND PLACE ON THE NUMBER
GONZALEZ FLETCHER.
NEXT UP WE HAVE ASSEMBLY MEMBER
ACOSTA.
THANK YOU MADAM CHAIR.
BOY A LOT LET A GREAT QUESTIONS
HAVE BEEN ASKED.
AND.
A YOU CAN SEE THAT THERE'S IS
AN IMPORTANT ISSUE IN FIRST OF
ALL LIKE TO THINK THE CHAIR I'M
TO BE THE OUT THE AUTHOR. IN A
FOR COVERING BRINGING THIS
IMPORTANT ISSUE TOOK TO THE FOR.
AND FRANKLY INVOLVING MY STAFF
AND ME AT SUCH A. HIGH LEVEL IN
THIS CONVERSATION I REALLY
APPRECIATE THAT. YOU KNOW I I
UNDERSTAND THAT SOME OF THESE
EXCEPTIONALLY HIGH INTEREST
RATES ARE REALLY CONCERNING AND
TO A LOT OF PEOPLE AND.
ESPECIALLY GIVEN THE GENERAL
FINANCIAL LITERACY THAT WE
HAVEN'T SOME SOME OF OUR
COMMUNITIES.
THAT ARE OFTEN TARGETED BY
THESE BODIES PRODUCTS BUT.
YELL AT IT THIS POINT
UNFORTUNATELY I'M JUST NOT ABLE
TO SUPPORT THE BILL AS IT IS.
AND AND I APPRECIATE THE
CONVERSATIONS THAT WE HAVE HAD.
KALRA.
AND I'LL I'LL BE LAYING OFF OF
THE BILL. AND BUT I DO YOU LOOK
FORWARD TO SEEING WHAT PROGRESS
YOU CAN MAKE BECAUSE THERE'S
OBVIOUSLY A LOT OF WORK THAT
NEEDS TO BE DONE IN THIS ISSUE.
AND GIVEN THE QUESTIONS THAT
HAVE BEEN ASKED HER TO DANCE BUT
THANK YOU VERY MUCH THANK YOU
I'M SURE.
I THINK IT'S A MEMBER ACOSTA
ASSEMBLY MEMBER CHOI.
I. THINK IT'S CHAIR.
AS I LISTEN MORE I GET CONFUSED
MORE.
NOW ORIGINALLY WHEN.
NOW WAS THERE.
ASSEMBLYMAN.
CORRECTING TO ME IT WAS SO VERY.
UNDERSTANDABLE IS SO INTENT WAS
SO TO PROTECT THE CONSUMERS HAVE
FROM OUR.
S. EXTRA ORDINARY HIGH.
INTEREST RATES OUT THAT THE
TRIPLE DIGIT TO HIT THE HUNDRED
TO TWO HUNDRED LEFT IN THE
PLACENTA SO OUTRAGEOUS SO.
BUT NOW WHEN I HEAR THE OPPOSITE
SIDE.
THE CONSUMERS SO WE'LL GET HURT
AND THAT THEY WOULD HAPPEN YOU
KNOW NO PLACE TO GO.
AND ALSO OUR HEARING THE THE
STAGGERING AMOUNT OF OF WHAT THE
SIX HUNDRED MILLION WAGNER SELF
FROM ONE
I NEED TO SELL.
OBVIOUSLY THERE ARE YOU KNOW THE
QUAKE NEED A PATH FOR THAT
MARKET THAT.
AND THOUGH I'M SURE THERE ARE SO
MANY OTHER COMPANIES US SO WHEN
WE AT ALL ARE OF TO OF SO. KNOW
FIGURE SET THAT'S SO A
TREMENDOUSLY HIGH MANOBA. YOU
KNOW WELL DODDER HAVE BEING IN
IT IT IN ALL. A.
COLOGNE DOT TO OUR SUCH LEVEL
OF.
CONSUMERS SIR.
WHEN.
NIGHT HERE THIRTY SIX PERCENT
AND THAT THERE ARE OUT WHAT THE
TWENTY ONE ST MAY.
STILL I'M NOT CONVINCED.
AND THEN ALSO SOME.
HOT COMPANIES THAT CAN LEAVE. A
WITH THE KEPT THIRTY SIX
SET.
AND I WONDER WHAT THAT THIRTY
SIX PERCENT DOWN.
ODD THAT IS SO REALLY VIABLE OR
INTEREST RATES THE FOR MANY
COMPANIES SET TO OUR.
ACCOMMODATE DONE AND DUSTED
MAKEUP PROFIT.
AND THERE ARE SOME COMPANIES ARE
SAYING YES. BUT THERE ARE SOME
SALES WE WOULD BE OUT OF THE
MARKET.
SO WELL WHICH SIDE DISH DOT
BELIEVE IN THAT IS SOME MY
FRUSTRATION AT THIS TIME.
HOW ARE?
I SHOULD KNOW WHICH SIDE THE
HOUSE EITHER SUPPORT THE WAR WHO
ARE. YOU KNOW NOT TO SUPPORT
THIS MAIL A I THINK I NEED TO.
HAVE US A MORE CONVINCING.
.
DID THE DATA.
AT THIS TIME IS UP REALLY.
.
NOT DATA. AND NOT DOES
SUBSTANTIALLY YA KNOW CONVINCING
ME.
.
ORIGIN ON IT INTENT OF US. THE
A.
CONSUMER A SUBPOENA.
PAYS JUST OUTRAGEOUS
OUTRAGEOUSLY CHARGED.
BUT THE WAY THAT THIS ARE VERY
PEOPLE WILL GET HURT TO.
THAT WOULD HAVE NO PLACE TO GO
TO.
SO IF FAR.
IF I CAN ADD MORE ANSWERS TO
THAT BUT I THINK I HEARD THEY
ENOUGH FOR.
AND THE.
I DON'T KNOW.
BUT I CAN GIVE THE SUPPORT IF
THE STOCK.
THINK YES ONLY NUMBER CHOI.
DECEMBER COVERAGE LIKE TO
RESPOND TO THAT OR WOULD YOU
LIKE TO MOVE ON TO THE NEXT GUY
I WOULD I WOULD JUST SAY THAT.
IF YOU LOOK AT THE DATA AND
FIRST OF ALL AND I KNOW THAT.
SAMBAR CHOI BECAUSE YOU
EXPRESSED THAT CONCERN ABOUT
BUSINESSES AND I THINK GOD
REMOVING FIVE TO TEN THOUSAND
DOLLARS HELPS A LOT IN THAT
REGARD SOMETHING A LOT OF
BUSINESSES THAT'S. AN AREA
ESPECIALLY THE BY WESTERN
EQUIPMENT WOULD HAVE YOU OF
WOULD ALLOW THEM TO STILL. I'M
YOU KNOW BUT THAT IT WOULDN'T
AND WE WILL FIND AND WORK ON
OTHER. ASPECTS CONSUMER
PROTECTION IN THAT RANGE BUT IF
YOU LOOK AT THE DATA.
THERE ARE QUITE A FEW OF AS I
MENTIONED.
THE MAJORITY OF THOSE THAT ARE
NOT IN THE THIRTY SIX PERCENT
GENERAL RANGER LOWER. OUR THEIR
INTEREST RATES. ARE OR SEVENTY
PERCENT HIGHER SOME ARE ALMOST
EXCLUSIVELY HUNDRED PERCENT AND
HIGHER.
SO.
BERNIE I UNDERSTAND YOUR POINT
THAT.
LOOK YOU KNOW.
OR YOU CAN HAVE A LOT OF FOLKS
THAT WON'T HAVE ACCESS AND IT'S
NOT JUST ABOUT THE HUNDRED
PERCENT TRIPLE DIGIT LOANS BUT
THE REALITY IS THAT THOSE THAT
AREN'T.
IN CONFORMITY AT LEAST IN THE
BALLPARK OF CONFORMITY PETER FOR
TWO.
DOUBLE DIGIT LOANS.
BECAUSE THE REALITY IS THAT THE
FARM MAJORITY OF THOSE THAT
AREN'T. OF THE FARM MAJORITY
LOANS GIVEN THAT AREN'T IN THE A
THIRTY SIX PERCENT RANGE THERE'S
A BIG GAP ALL OF A SUDDEN. IS I
DOUBT BECAUSE EVERYONE DOES GET
THIRTY SIX PERCENT ALL OF A
SUDDEN CAN'T QUALIFY THAT FIFTY
PERCENT OR SIXTY PERCENT OR
SEVENTY PERCENT. OR IS THERE A
BUSINESS MODEL IN PLACE THAT.
THAT IS.
FOISTING.
HIGHER PERCENTAGES ON FOLKS THAT
CAN'T GO ANYWHERE ELSE AND THE
END UP IN THE SAME PLACE THAT
WOULD HAVE BEEN AT THOSE LOANS
WERE MADE AVAILABLE TO THEM.
BORROWING MONEY FROM FRIENDS AND
FAMILY GOING TO PAWN SHOPS GOING
TO A LIAM SELLING THEIR
PROPERTY.
TO PAY BACK A LOAN OR THEY'RE
GOING TO DEFAULT AND THEY CAN'T
GET ANOTHER LOAN AT THE BACK TO
THE TO SQUARE ONE. AND SO THE
QUESTION AS IS INDICATED IN THE
REPORT IS
THE PUBLIC THAT THE PRIMARY%
PUBLIC POLICY QUESTION RAISED BY
THIS BILL. IS AT WHAT POINT THE
BENEFITS OF ACCESS TO CAPITAL
OUTWEIGHED BY THE COSTS
DOES PROVIDING A HIGH COST LOAN
TO HOUSEHOLD AND FINANCIAL NEED.
DO MORE HARM THAN GOOD AND I
WOULD ARGUE THAT THE MAJORITY
THE TIME IT DOES MORE HARM THAN
GOOD.
THANK YOU ASSEMBLY MEMBER KALRA
ASSEMBLY MEMBER CERVANTES.
WHAT WE'RE FIRST OFF I WANT I
THINK THE CHAIR IN THE AUTHOR
FOR WORKING SO DILIGENTLY ON
THIS BILL AND BRING IN SOME
STAKEHOLDERS TO THE TABLE?
THIS IS GONNA HAVE A LIVELY
DISCUSSION.
AND SINCE WE STARTED COMMITTEE.
I DO RECOGNIZE THIS BEING AN
IMPORTANT FIRST STEP.
HOWEVER I STILL SEE A LOT OF
IMPORTANT DATA THAT'S.
IT'S LACKEY AND AS WE'VE HEARD.
ON BOTH SIDES.
I DO ALSO RECOGNIZE THAT THERE
NEEDS TO BE MORE TIME TO FIND A
REASONABLE SOLUTION.
I'VE SPOKEN TO MANY ON BOTH
SIDES WHO ARE IN THIS ROOM.
SOME WHO ARE ALSO WILL LEAN. TO
FIND A PATH FORWARD.
WHICH IS SOMETHING I CERTAINLY
APPRECIATE.
THERE ARE SIX SOME CONCERNS I
HAVE ON UNINTENDED CONSEQUENCES.
PERHAPS WHERE CONSUMERS ARE LEAD
TO SITUATIONS THAT ARE NOT
ECONOMICALLY DESIRABLE.
ACCESS.
IS A BIG CONCERN.
AS WELL.
SHOULD THIS BILL.
REACH THE ASSEMBLY FLOOR I WILL
RE EXAMINE ITS MERITS THAN.
HOWEVER I DO WANT TO BE A PART
OF THIS ONGOING DISCUSSION
BECAUSE IT DOESN'T AND TODAY.
WE NEED TO CONTINUE OUR WHATEVER
HAPPENS TODAY IN COMMITTEE.
BUT I WANT TO ASSURE THAT WE DO
STRIKE A BALANCE.
I BETWEEN PROTECTING CONSUMERS
AND PROVIDING ACCESS
AND I BELIEVE MANY ON ON THIS
COMMITTEE. MANY OF MY COLLEAGUES
TO RECOGNIZE THAT.
I STILL WITHOUT THOSE ARE MY
THOUGHTS.
BUT TIME MEMBER GRAYSON YES REAL
QUICK.
THE MILITARY NEGOTIATED A
THIRTY SIX PERCENT RATE CAP
WHAT WHAT'S THE BACKGROUND OF
THAT HOW DID THE HOW DID THEY
GET TO THIRTY SIX PERCENT AND
WHY WAS THAT THE SWEET SPOT FOR
MILITARY.
THE.
.
THE MILITARY ALLMAN SECULAR HOOK
MY NOTES I I KNOW THAT I HAVE
MOVING.
BUT I DO KNOW THAT THE MILITARY
PUT PART OF THE REASON WHY THEY
RIDE AT THIRTY SIX PERCENT.
IS THAT.
.
THAT IS A WORM.
OTHER STATES ALREADY HAD IT AND
I THINK THAT THIRD THAT THAT WAS
THE AND WE DO HAVE ARTICLES I
CAN SEND YOU AS WELL. THAT.
THAT THEIR ANALYSIS OF WHAT
THOSE OF THOSE STATES BEING AT
THIRTY SIX PERCENT FOUND THAT IT
BOTH ALLOWED FOR ACCESS TO
CREDIT. ABA WHILE PROTECTING THE
CONSUMER AND SO I THINK IT
REALLY FALLS IN LINE WITH THE
ARGUMENT THAT WE'RE MAKING IS
THAT. THERE'S A REASON WHY
THIRTY SIX PERCENT. OF HAS
BECOME A BENCHMARK FOR THESE
LOANS AND THERE'S A REASON WHY
THE MILITARY ADOPTED.
ATTACK THOSE THAT ARE SERVING
FOR.
.
ONE THING ABOUT THIRTY SIX
PERCENT THAT THE MILITARY ON THE
THAT THE MILITARY LENDING ACT
REQUIRES.
BOB.
ADMIRAL AB IT WAS QUOTED NATURAL
ALLEN IS THE CEO OF THE NAVY
MARINE RELIEF SOCIETY. REAL DATA
HERE AFTER THE THIRTY SIX
PERCENT WHEN AND.
THOUGHT HE WAS HE WAS QUOTED
SAYING OVER TRAP PROGRAMS HAVE
REPLACED PAYDAY LENDING AS THE
LEADING FINANCIAL PROBLEM. FOR
MANY MILITARY PERSONNEL.
SO IT'S IT'S NOT LIKE ONCE AGAIN
THE DOES THE MAN GO AWAY NO THEY
SEEK OUT OTHER OPTIONS
AND IN THIS CASE A THEY SOUGHT
OUT OVERDRAFT. AN OVERDRAFT.
CORNING NEW YORK POST I THINK
OF THIS WAS AN ARTICLE RECENTLY
THIRTY FOUR BILLION DOLLARS IN
THE U. S. OVERDRAFT PROTECTION
FEES.
AND INTERESTINGLY THE MOST
THAT'S IT THAT'S INCREASING IS
THE COSTA CREDIT UNIONS CREDIT
UNIONS ARE INCREASING THEIR OVER
TRAP COSTS.
A TO CONSUMERS SO ART ARE
CONCERNED ONCE AGAIN IS THAT IT
IS SHOWN WITH THE MILITARY
THERE'S TURNING TO ANOTHER FORM
OF LANDING. AND I WOULD IMAGINE
A MORE DIFFICULT AND DAMNING
FORM OF LENDING USING OVER
TRAFFIC A POTENTIALLY PUT YOUR
BANK ACCOUNT AT RISK.
THANK YOU VERY MUCH AND I DO AS
WELL WANT TO RECOGNIZE THE HARD
WORK OF THE CHAIR.
AND ALL THAT YOU'VE DONE WITH
YOUR COMMITTEE STAFF.
AUTHOR ASSEMBLY MEMBER KALRA
THANK YOU FOR YOUR HARD WORK AS
WELL THE VOICES THAT HAVE SPOKEN
LE IN SUPPORT AS WELL AS THOSE
THAT HAVE COME IN AND.
SPOKEN OPPOSITION.
THERE ARE VERY PASSIONATE
ARGUMENTS AND.
STRONG OPINIONS
ON EACH SIDE.
I KNOW THAT TED.
THE ISSUE OF DATA HAS BEEN
DISCUSSED.
I.
ASSEMBLY MEMBER KALRA AYE I DID
HEAR YOU START OFF YOUR
PRESENTATION WITH.
MOVING THE FOR A THE CEILING
FROM TEN THOUSAND DOWN TO FIVE
THOUSAND.
WE'VE HEARD THE DISCUSSION OF
CREDIT REPORTING AND HOW
IMPORTANT THAT IS BECAUSE I
ACTUALLY BELIEVE THAT IS A
LADDER. AND A WAY TO HELP PEOPLE
OUT OF.
THEIR DEPENDENCY ON HIGH
INTEREST.
LOANS AND TO BE ABLE TO GET IN
TO THAT.
THE THE THE BANKING SYSTEM.
THE ORIGINATION FEE.
IN MY ESTIMATION I THOUGHT IT
WAS SEVEN PERCENT THAT.
THERE SEEMS TO BE SOME SOME
DISCUSSION THERE THAT NEEDS TO
TAKE PLACE AND THE OTHER THING
THAT'S VERY VERY IMPORTANT TO
ME.
IS THAT THERE OUGHT TO BE A
MEANS OF PROTECTION.
FOR THOSE THAT ARE ENTERING INTO
SUCH A HIGH RISK.
INDUSTRY OF LOANING.
MONEY TO FOLKS WITHOUT CREDIT
OR VERY BAD CREDIT AND THERE
SHOULD BE A MEANS FOR THEM.
TO BE ABLE WELL OUTSIDE OF THE
PARAMETER OF A CAP
TO BE ABLE TO OUT WILL PROVIDE
COVERAGE FOR THEMSELF.
BLOOM LOAN INSURANCE.
A A COLLEAGUE SAID THAT.
THEY WERE VERY ENCOURAGED AND
APPRECIATIVE OF YOUR HARD WORK.
AND HOW THAT IT WAS.
IMPORTANT THAT THE CONVERSATION
CONTINUE.
AND THAT.
MY COLLEAGUE WAS VERY
SUPPORTIVE AND WANTED THAT.
CONVERSATION TO CONTINUE
THE ONLY WAY THAT CONVERSATION
CONTINUES IS IF THIS BILL GETS
OUT OF THE COMMITTEE OTHERWISE
YOU MIGHT AS WELL JUST.
KILL IT RIGHT HERE AND THEN
THERE'S NO CONVERSATION
I WAS FACED WITH THE SITUATION
LAST YEAR. IN A COMMITTEE OF A
VERY. OF HARD CONTROVERSIAL BILL
THAT I WOULD CONSIDER LIKE INTO
THIS ONE.
AND THE THE THE THING THAT I
THOUGHT WAS THE WISEST TO DO WAS
TO MAKE SURE THAT WE ALLOWED
BOTH SIDES TO CONTINUE TO WORK
AND BECAUSE YOU HAVE MADE. SOME
TREMENDOUS MOVEMENT.
ESPECIALLY TODAY IN OUR TALKS.
YOU HAVE SHOWN TO ME THAT THERE
WAS SOME GOOD FAITH ON YOUR
PART.
I JUST.
I WILL I WILL HAVE THE THEM I
WILL. HAVE THE BENEFIT AND
RESERVATION.
THAT IF THIS BILL DOES NOT
ADDRESS THESE KIND OF THINGS IF
IT GETS OUT OF THIS COMMITTEE.
AND THE CONVERSATIONS DON'T TAKE
PLACE THAT NEED TO TAKE PLACE
THAN I I WOULD.
RESERVE THE RIGHT TO BE ABLE TO
NOT SUPPORT ANYTHING THAT MAY
END UP ON THE FLOOR.
SO.
.
HAVING SAID THAT.
THANK YOU ASSEMBLY MEMBER
GRAYSON ASSEMBLY MEMBER WEBER.
YES.
WANT TO THANK YOU ALSO KNOW YOU
PUT A LOT OF HARD WORK INTO THIS
BILL YOU AS WELL AS THE CHAIR
COMING INTO THIS POSITION NEW OF
FACING THIS. PROBLEM.
AND I APPRECIATE THE COMMENT
SORRY I WAS LATE I WAS TEARING
THE BUDGET COMMITTEE SO WE JUST
FINISHED.
SUMMER YOU BASSAM SOME CRITICAL
QUESTIONS ABOUT THIS BILL AND
JUST LET ME SAY THIS THAT FIVE
YEARS AGO. YOU MAY HAVE BEEN ON
IT WITH ME TOO I'M NOT SURE IF
IAN WAS ON THE BANKING COMMITTEE
FIVE YEARS AGO I WAS ON THIS
COMMITTEE.
AND ONE OF THE MOST
CONTROVERSIAL THINGS CAME UP
WITH THIS SO IT'S NOT AN OLD NEW
TOPIC IT'S A RATHER OLD TOP
ACUTE THE CAPITAL THE KIND OF
GOALS IN CIRCLES.
WITH DATA AND INFORMATION AND
ALWAYS WITH THE THREAT THAT
PEOPLE WILL ALL THESE THINGS
WILL GO AWAY.
AND.
.
I CAN'T REMEMBER THE OUTCOME OF
IT BUT OBVIOUSLY WE DIDN'T PASS
THE BILL AT LEAST WE DID NOT THE
FLOOR SOMETHING HAPPEN.
BUT I THINK THE CONVERSATION IS
EXTREMELY IMPORTANT AND IT IS
SPECIALLY IF YOU COMMUNITIES I
HAVE A. A DISTRICT THAT HAS A
LITTLE BIT OF EVERYTHING IN IT
YOU KNOW WERE AFFLUENT
COMMUNITIES WE HAVE LOTS OF
RESOURCES AND WHAT HAVE YOU. AND
I ALSO HAVE THE HEART OF SAN
DIEGO OF RIGHT NEXT TO LORRAINE
IS DISTRICT WHERE. OF WHAT WE
HAVE THESE CHALLENGES AND THE
THING I'VE NOTICED MORE RECENTLY
TO SEE IT IS EASIER TO GET. TO A
PAYDAY LOAN OR OR A CARLENE
PLACE THAN IT IS TO GET TO A
BANK.
THERE ARE VERY FEW BANKS IN AND
CREDIT UNIONS IMPORT COMMUNITIES
SO ALMOST NO CREDIT UNIONS
BUT THEY ARE SURELY VERY VERY
FEW BANKS IN THESE COMMUNITIES
AND THE FACT THAT I CAN THINK
OF.
TO A THREE FACILITIES RIGHT NOW
ON MY DISTRICT WITH A ONCE FOR
BANKS ANOTHER CAR LOAN PLACES.
OF THE SO THE BANKING IS GONE
ALMOST IN POOR COMMUNITIES AND
THAT'S UNFORTUNATE.
BECAUSE SOMETIMES IT JUST THE
OPPORTUNITY TO GET TO KNOW A
BANK AND TO BE A PART OF IT AND
SAVE A LITTLE MONEY AND YOU KNOW
DEVELOP SOME RELATIONSHIP THAT
PEOPLE USED TO DEVELOPMENT
BANKS.
DOESN'T EXIST ANYMORE SO NOW OUR
OUR COMMUNITIES ARE LEFT TO THIS
AS THE OPTION.
AND EITHER SOMEONE DIES YOU GOT
A PROBLEM EITHER THEM GOLD OVER
THERE AND DO THAT OR YOU DON'T
HAVE A CAR WATCH THIS SPECIALTY
NOW AND POOR COMMUNITIES AT CAR
WASHES THE FUNERALS OKAY. BUT
THAT'S BEEN INNOVATIVE I MEAN AT
LEAST YOU DON'T UP AND DID YOU
KNOW YOU.
WE MAY WATCH A WHOLE BUNCH OF
CARS AND DELAY THE FUNERAL BUT
PEOPLE HE'D YOU DO WHAT YOU
GOTTA DO.
SO I THINK THIS CONVERSATION IS
IMPORTANT AND IT HAS TO GO
FORWARD THAT YOU KNOW THE IDEA
THAT. THE PEOPLE ARE HEARING A
HUNDRED AND SOME ODD PERCENT OF
TOUR OF FOR SOME COMPANY REMINDS
ME OF WHAT FOLKS TALK BACK IN
THE IN THE THIRTIES AND FORTIES
ABOUT LOAN SHARKS IN COMMUNITIES
AND. LENDING MONEY AND YOU KNOW
YOU HAD BEHIND PERCENT RIGHT
AWAY AND AND THEN THE FACT THAT
OTHER THINGS HAPPEN TO PEOPLE OF
THE DOWNWARD SPIRAL. AND I KNOW
YOU KNOW HAVING LIVED ALL MY
LIFE AND POOR COMMUNITIES IN A
THAT.
YOU KNOW SOMETIMES THOSE HOLES
ARE SO DEEP.
UNLESS YOU HAVE A RELATIVE WHO
CAN FIGURE OUT YOU KNOW YOU JUST
YOU JUST KEEP GOING ANY GOALS
AND IT GOES IN AND IT'S
UNFORTUNATE. OF THAT IMPACTS
FAMILIES IN THE WAY THAT IT DOES
SO I'M GOING TO SUPPORT THIS
BILL BECAUSE OF THE WORK THAT
YOU'VE DONE I KNOW YOU GOT
ADDRESS THOSE ISSUES THAT OF THE
AND WE ALWAYS SERVE THE
OPPORTUNITY. TOOK TO PULL BACK
BUT I THINK THE CONVERSATION IS
IMPORTANT AND WHEN FOLKS THAT I
THINK THIS HAS BEEN HERE BEFORE
YESTERDAY AS I KNOW WAS HERE. IN
IN TWENTY THIRTEEN BECAUSE I WAS
ON THE COMMITTEE AND TWENTY
THIRTEEN WE HAVE AND YOU MAY
HAVE BEEN YOU TO YES A.
IN THE CONVERSATION AT TWENTY
THIRTEEN SO THIS IS IT THIS IS A
SUBJECT THAT'S GONE AROUND AND
AROUND AND WE HAVE TO FACE IT.
THAT IS AN INDUSTRY HERE AND NO
INDUSTRY LIKES REGULATION I HAVE
IT AT AS I STUDIED HISTORY. A I
DON'T KNOW INDUSTRYYET BUT LIKE
RIGID REGULATION THE LABOR
INDUSTRY DIDN'T LET ME LIKE
REGULATION BUT THOUGH THE A
PRIVATE ENTRY DID WHEN HE CAME
TO. BASICALLY ALL YOUTH WORKERS
CHILD LABOR NOBODY LIKE
REGULATIONS NOBODY LIKES TO BE
SAID YOU HAVE TO DO THIS VERSUS
THAT BANKS DON'T EVEN REALLY
LIKE REGULATION THEY'VE LEARNED
TO LIVE WITH THAT. AND WHEN WE
DEREGULATE THAT WE KNOW WHAT
HAPPENED SO WE NO ONE LIKES
REGULATION AND ESTIMATE AND AS
LONG AS YOU'RE ABLE TO OPERATE
WITHOUT IT YOU WILL OKAY. ARE IF
YOU HAVE REGULATION THINGS
OFTENTIMES BUSINESS FIGURE OUT
HOW TO WORK WITHIN THE
REGULATIONS.
AND I THINK WE SHOULD TRY TO
MAKE THE REGULATIONS REASONABLE
SO THAT THAT THE BUSINESSES KID
WHO CHOOSE TO REMAIN CAN'T
SURVIVE. BUT IT'S IT SEEMS
ALWAYS UNREASONABLE TO ME THAT.
I CAN ONLY GET SOMETHING IF I
JUST HAVE IT IF SOMEBODY'S
HOLDING OVER MY HEAD HAVE TO PAY
THOSE ZILLION DOLLARS TO GET
THIS BECAUSE OTHERWISE THEY
WON'T GIVE IT TO ME. YOU KNOW
IT'S IT'S YOU AND WE HEAR THAT
SO OFTEN IN POOR COMMUNITIES
WHERE RESOURCES ARE SO LIMITED
THAT WE BROUGHT YOU FRESH
VEGETABLES INSTEAD OF THE ALL
VEGETABLES YOU LATE COST YOU SO
MUCH MORE. AND YOU WONDER WHY IS
AN ORANGE IN MY COMMUNITY SO
EXPENSIVE.
WAS IT A SPECIAL TRUCK A LIMO A
ROLLS ROYCE THAT BROUGHT IT IF
NO IT WAS BROUGHT IN FROM
SOMEWHERE ELSE THAT WAS OLD AND
SO. OFTEN TIMES ARE FIGHTING
THESE BATTLES THAT WE THINK WE
SHOULD HAVE TO FIGHT WITH PEOPLE
DON'T HAVE TIME TO FIGHT THEM
THEY DON'T HAVE THE RESOURCES
THEY DON'T KNOW WHERE TO GO.
THEY DON'T HAVE THE THE THE THE
SPIRIT ANYMORE JUST TO FIGHT THE
INSTITUTIONS THAT COULD POSSIBLY
BRING THEM SOMETHING
SO.
SO I I APPRECIATE OF MY
COLLEAGUE GO.
THE FROM SAN JOSE.
TAKEN THIS AS A ISSUE NAY HAS
SINCE HE'S BEEN HERE AND
FIGHTING THE GOOD FIGHT OUGHT I
APPRECIATE MY NEW CHAIR WHO'S
WHO'S STANDING THERE WITH THE
MEN AND I ASKED THE REST OF US
TO HAVE SOME FAITH IN THE FACT.
pTHAT IF WE IF WE BECOME
REASONABLE AND REGULATE THIS
THAT IT WILL STILL SERVE A VERY
IMPORTANT PURPOSE IN CALIFORNIA.
AND IT WILL BE FAIR TO FOLKS WHO
ARE STRUGGLING THE MOST
IT'S ALMOST LIKE WHEN YOU ON THE
BOTTOM SUBMITTED TO STEPS ON YOU
KNOW. AND AND AND AND THAT NONE
OF US WOULD TAKE OUT ANYTHING
THERE'S A HUNDRED AND SOME ODD
PERCENT ALONE I MEAN THAT WOULD
JUST BE WE THINK WE'VE LOST OUR
MIND WE STRUGGLE AND FIGURE OUT
HOW TO DO SOME OF THE WAY. BUT
THAT'S BECAUSE WE SEE OURSELVES
WITH OPTIONS AND RESOURCES
AND SOMETIMES THOSE COMMUNITIES
DON'T SEE IT AND SOME AND WE
HAVE TO PROVIDE SOME LEVEL OF
SUPPORT OR COVER FOR THEM IN
TERMS OF MAKING SURE THAT THE
INDUSTRY. UGH REGULATES ITSELF
UP BUT THAT WE PARTICIPATE IN
THAT REGULATION AND PUTS THEM
CAPS AND LIMITS ON.
THANK YOU ASSEMBLY MEMBER WEBER
AYE I THINK THAT THIS HAS BEEN A
VERY IMPORTANT CONVERSATION I
THINK THAT THE AMOUNT OF TIME
THAT THIS COMMITTEE HAS
INVESTED.
I WOULD AGREE THAT THE
COMMITTEE AT TEAM HAS BEEN
INCREDIBLY SUPPORTIVE BUT I ALSO
THINK THAT THIS DISCUSSION IS
REFLECTIVE OF HOW IMPORTANT THIS
CONVERSATION IS. IT HAS BEEN
NOTED OVER AND OVER AGAIN THAT
THIS IS A HISTORICAL
CONVERSATION IT DIDN'T COME UP
LAST YEAR IT DIDN'T COME UP FIVE
YEARS AGO IT DID COME UP TEN
YEARS AGO. AND SO WHEN THIS
COMMITTEE STARTED THINKING ABOUT
THIS PARTICULAR BILL WE ACTUALLY
WENT TO HISTORY WE WENT TO WHEN
THE FIRST THAT KIND OF LAWS WERE
PASSED THE LOUD. OPPORTUNITY FOR
THIS AND WE THOUGHT TO OURSELVES
WHAT WAS THE GENESIS AROUND THAT
WHAT WAS THE THINKING ON AND IT
WAS AND RECOGNITION THAT OUR
COMMUNITIES DO INDEED HAVE
LIMITED ACCESS.
AND WE BELIEVE THAT I BELIEVE
THAT I BELIEVE THAT THERE ARE
PEOPLE WHO I'VE WORKED WITH IN
THE COMMUNITY I REPRESENT AND
ALL THROUGHOUT CALIFORNIA THAT
DON'T HAVE THE OPPORTUNITY TO
WALK INTO A BANK THAT DON'T HAVE
A RELATIVE WHO CAN GIVE THEM
ALONE ON THE SPOT. I BELIEVE
THAT AND.
WE BELIEVE I THINK IS A
COMMITTEE THAT THAT'S WHERE THIS
CAME FROM FROM UNDERSTANDING
THAT THAT WAS A TRUE ISSUE ON IN
OUR COMMUNITY BUT I WANT TO
QUOTE ONE OF MY COLLEAGUES WHO
SAID THAT IT'S REALLY IMPORTANT
TO STRIKE THE RIGHT BALANCE
BETWEEN ACCESS. AND PROTECTING
CONSUMERS.
AND I THINK THAT THIS IS WHAT
IT'S ABOUT.
UP.
YOU KNOW I'VE I'VE WE'VE STUDIED
THE ISSUE SEVERAL FOLKS HAVE
TALKED TO WES I AM AND I WAS
HANDED A VERY USEFUL ARTICLE
ABOUT SOUTH DAKOTA.
AND WHAT HAPPENED WHEN SOUTH
DAKOTA KIND OF WENT TO THIS.
AND I HAVE TO TELL YOU THAT A
RED STATE VOTED.
CAP THEMSELVES ON THIS ISSUE.
AND SO WHEN I THINK ABOUT THAT I
THINK ABOUT WHAT IT DID ENSURE
THERE ARE CONSEQUENCES AND I
HOPE THAT THOSE ARE
CONVERSATIONS THAT WE WILL HAVE
SHOULD THIS BILL MOVED FORWARD.
ABOUT WHAT THAT MEANS.
BUT THE PUBLIC WANTS THIS
AND IF THE RED CONSERVATIVE
STATE LIKE SOUTH DAKOTA. ON
WANTS THIS I ALSO THINK THAT I
WE HAVE THE OPPORTUNITY HERE IN
CALIFORNIA TO LEAD THE
CONVERSATION HERE.
IF THIS CONVERSATION WENT TO THE
BALLOT.
WHICH IS GOOD BECAUSE WE ARE
STATE THAT LIKE A LOT ABOUT
ENOUGH FOR THEM AND EATEN IT
WOULD GO IN A DIFFERENT
DIRECTION AND THOSE OF US WHO
HAVE THAT INVESTED HOURS AND
HOURS EXPERTS. ON BOTH SIDES
OPPOSITION INCLUDED WOULD NOT
HAVE THE SAME LEVEL OF
OPPORTUNITY AND SO I THINK IT'S
REALLY IMPORTANT FOR US AYE TO
CONTINUE THIS CONVERSATION. I'M
REALLY.
.
YOU KNOW I I I LOW I AM OPEN AND
I'M.
AND I. WANT TO CONTINUE TO
ENCOURAGE WHAT I'VE HEARD OVER
AND OVER FROM THE OPPOSITION
THAT YOU ARE INTERESTED IN
WORKING ON THIS.
AND I THINK YOU BRING A SUBJECT
MATTER EXPERTISE THAT IS
IMPORTANT TO THE TABLE I THINK
IT'S ONE THAT PROVIDES VALUE TO
US AS WE CONTINUE TO MOVE
FORWARD IN THIS. A AND AND I
HOPE YOU WILL BECAUSE THERE'S
ALSO FORMER BILLS THAT.
WORK IN A SPACE THAT.
REQUIRES US TO THINK ABOUT WHAT
THOSE OPPORTUNITIES ARE WHEN
PEOPLE DON'T HAVE ACCESS TO A
BANK AND SO I HOPE THAT THAT'S
ON A GENUINE INTEREST I FEEL
LIKE THERE HAS BEEN A.
CONVERSATION THAT HAPPENED
INDIVIDUALLY IN SMALL GROUPS WE
HAD A STAKEHOLDER MEETING LAST
WEEK AND IT IS A OUR INTERESTS
TO CONTINUE THOSE CONVERSATIONS
THE COMMITTEE TO ENGAGE IN
DIFFERENT WAYS. TO UNDERSTAND
HOW WE HAVE THIS
I IT IS ALSO MY BELIEF AS CHAIR
OF THIS COMMITTEE THAT IF THIS
CONVERSATION.
IF THIS PARTICULAR BILL DOESN'T
MOVE FORWARD TODAY IT IS NOT THE
END OF THE CONVERSATION.
THIS BILL FOR THIS IDEA WILL
COME BACK BECAUSE THAT IS WHAT
HISTORY HAS SHOWN US.
AND SO I THINK IT'S AND I HOPE
THAT ALL OF THOSE AT THE TABLE
WILL REALLY THINK ABOUT HOW WE
MOVE IT FORWARD. AND ASSEMBLY
MEMBER KALRA I'M ENCOURAGED BY
THE FACT THAT YOU ARE OPEN TO
CONSIDERING THE CONCERNS THAT
HAVE BEEN RAISED IN THE ANALYSIS
IN ADDITION. I AM I WANT TO BE
CLEAR THAT YOU ARE REMOVING THE
CAP FROM FIVE TO TEN THOUSAND
DOLLARS AND THAT THERE IS IN A.
AN ADDITIONAL CONSIDERATION OF
EXPLORING CREDIT REPORTING IN
THIS.
SCRIPT.
ALRIGHT.
ASSEMBLY MEMBER KALRA WOULD YOU
LIKE TO CLOSE I WOULD OF NEW
REALLY. YOU KNOW FIRST LARGELY
ONE OF THANK YOU MADAM CHAIR I
THINK YOUR LEADERSHIP HAS BEEN
EXEMPLARY.
AND LIKE I COULDN'T ASK FOR A
BETTER CHAIR TAP NEGOTIATE THIS
VERY DIFFICULT ISSUE WITH SUB
I'M VERY GRATEFUL. TO YOU ARE
I'M VERY GRATEFUL TO FELLOW
COMMITTEE MEMBERS WHETHER.
YOU'RE PREPARED TO VOTE. UP OR
DOWN ON THIS I THE WAY YOU GIVE
ME THE RESPECT AND THE TIME IN
THE COURTESY AND GENEROSITY
UNDER CONSIDERATION AND THAT'S
EXTREMELY. MEANINGFUL TO ME AYE
WE DEAL WITH A LOT OF ISSUES AND
WE CAN HAVE.
CONVERSATIONS ABOUT OF ONE
ANOTHER WE CAN'T DIALOGUE OTHER
I THINK IT DIMINISHES ALL OF US
AND DIMINISHES. OF THE ASSEMBLY
AS A WHOLE.
.
AND YOU KNOW I I PUT.
WOULD START STARTING WITH THE
JUST BUT WITH THE SUMMER GRAYSON
AYE YES. TO ALL YOUR POINTS.
THOSE ARE ISSUES THAT AS WE HAD.
DURING THE COMMITTEE HEARING
THEY ALL CAME UP IN DIFFERENT
FORMS. AND ABSOLUTELY.
YOU KNOW THE DOOR CONTINUES TO
BE OPEN WE HAVE HAD A NUMBER. OF
OF INDUSTRY.
MEMBERS REPRESENTATIVES MEET
WITH ME MEET WITH MUCH OF A
STAFF MEET WITH THE.
OF THE COMMITTEE STAFF AND I
IMAGINE THAT THAT'S IS GOING TO
CONTINUE GOING FOR I HOPE IT
DOES.
CONTINUE GOING FORWARD.
I ALSO HAVE CONCERNS OF
UNINTENDED CONSEQUENCES AND
ACCESS.
AND AND.
IT'S REAL HARM A A BUT I THINK
THAT AS THE CHAIR PUT IT.
A SOMBER ALDERON PUT AND
OTHERS IT IS ABOUT FINDING THAT
BALANCE IT'S ABOUT HOW WE DO IT
THE RIGHT WAY. AND IT'S NOT EASY
AND IT'S NOT SUPPOSED TO BE
EASY.
OF THEM MAYBE LIKE TOO DIFFICULT
THINGS BUT THIS IS SOMETHING
THAT'S IMPORTANT BECAUSE BECAUSE
IT ISN'T EASY BECAUSE OF
SOMETHING THAT I THINK WE DO.
NEED TO ADDRESS DE AND.
I'LL JUST TERM.
WITH THE DOCTOR WEBER IS THE.
INSPIRATION FINISH BY SAYING
LOOK YOU KNOW.
A LOT OF US WERE DIFFERENT
DANCEABLE BEACON THIS MORNING
HOUSES SAN JOSE AT OUR SITTER
JOBS BREAKFAST.
AND.
XENA CHAVEZ FIRST ORGANIZING SAN
JOSE NAY BECAUSE ALSO PLAY THIS
GET OUT IF YOU CAN.
OF ROUGH STORY ROAD NEAR
STARRING KING.
I THINK THAT.
HE YOU.
IT WOULD BE VERY DISAPPOINTED IF
HE SAW.
CONDITION THAT NEIGHBORHOOD NOW
WHICH THAT HAS THE POOREST
CENSUS TRACTS IN THE SMOKING
VALLEY.
WHERE YOU HAVE LIQUOR STORES A
CONVENIENCE STORES AND PSYCHOSIS
STORES?
WHERE YOU HAVE CHECK IT CATCHES
A PAVE UNDER SOME SORT OF
TRADITIONAL?
RATHER THAN SIT DOWN RESTAURANTS
FOR FARMERS MARKETS.
THAT'S A FAILURE OF OURS.
THE FAILURE.
OF BATTLEMENT.
WHEN YOU ALLOW NEIGHBORHOODS TO
FALL INTO THAT LEVEL OF
DISREPAIR.
I AM WILLING TO AND COMMIT TO
WORKING WITH ANYONE THAT WANTS
US TO UPLIFT THOSE NEIGHBORHOODS
UP THOSE THOSE FAMILIES.
GIVE THEM ACCESS TO REAL CREDIT
AND REAL FINANCIAL OPPORTUNITY.
SO THAT BECAUSE TO A STOP THIS
DOWNWARD SPIRAL IN SO MANY OF
OUR NEIGHBORHOODS THAT I HEARD
FROM ALL OF YOU THIS AFTERNOON.
AND SO BUT THAT ONCE AGAIN THANK
YOU MADAM CHAIR RESPECT THE
ASPIRIN AYE BUT. I THINK YOU
THIS BILL HAS IT DO PASSED TO
APPROPRIATIONS COMMITTEE PLEASE
CALL THE ROLL AND WE DO HAVE A
MOTION AND A SECOND.
AB TWENTY FIVE HUNDRED DO PASSED
COMMITTEE ON APPROPRIATIONS.
LAMONT I.
LIMON AYE CHEN.
CHEN NOT VOTING.
ACOSTA.
THAT VOTING.
ACOSTA NOT VOTING BURKE.
CALDERON.
CALDERON AYE.
SIR ON THIS.
CERVANTES I CHOI NOT PHONY.
GONZALEZ CHOI NOT VOTING.
GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE.
GRAYSON.
GRAYSON AYE.
STONE.
STONE AYE. WEBER.
WEBER I.
THE BILL IS OUT OF COMMITTEE ON
TO APPROPRIATIONS WITH THE
SEVEN.
A.
VOTE.
THANK YOU ASSEMBLY MEMBER KALRA
I WANT TO THINK ASSEMBLY MEMBER
SIGNERS HAS BEEN SO PATIENTS.
SO PATIENT.
PLEASE FEEL FREE TO COME
FORWARD.
AND WHILE ASSEMBLY MEMBER STAND
WORTH THAT COMES FORWARD.
WE ARE GOING TO TAKE THE ROLE
ON THE CONSENT AGENDA. MEMBERS
WE DO HAVE THREE ITEMS ON
CONSENT AB TWENTY FIVE A THREE
A. B..
YOU.
CALDERON.
WHICH WILL TAKE WRONG CONSIDER.
THAT.
LIMON I.
GEN.
ACOSTA.
I.
BURKE.
CALDERON.
CERVANTES.
CHOI AYE.
GONZALEZ FLETCHER.
GRAYSON.
STONE.
WEBER
RENDON MOVES OUT.
THANK YOU SO MUCH ASSIGNMENTS
AND
PLEASE
MY PLEASURE FOR SITES JUST HOPE
EVERYONE HAS GOTTEN ALL THOSE.
WONDERFUL QUESTIONS EITHER WAY.
NICE SIMPLE BILL PRESS TO FINISH
THE DAY WITH BUT I I JUST WANTED
THINK THAT MADAM CHAIR AND
MEMBERS FOR BEING HERE TODAY.
I THINK YOU FOR THE OPPORTUNITY
PRESENT ASSEMBLY BILL SEVENTEEN
EIGHTY ONE WHICH WILL PREVENT
BUSINESS OWNERS PERSONAL AND
SENSITIVE INFORMATION FROM BEING
EASILY ACCESSIBLE ONLINE.
TODAY STATEMENTS OF INFORMATION
FILE BY CORPORATIONS AND LLC'S
CAN BE VIEWED ONLINE BY IT IN
INDIVIDUAL WITH INTERNET ACCESS.
ALTHOUGH ALLOWING THE PUBLIC TO
REVIEW THESE BUSINESSES FILINGS
ONLINE DOES IMPROVE GOVERNMENT
TRANSPARENCY AND EFFICIENCY SOME
OF THE INFORMATION PROVIDED IN
THE FILINGS CAN BE SUBSTANTIALLY
IN EASILY MISUSED.
THE PERSON.
FILINGS CAN QUICKLY BE PULLED
FROM THE DOCUMENT AND YOU.
INCLUDING CHECKS.
THE RESIDENTIAL ADDRESSES
PROVIDE BY SOME BUSINESS OWNERS
CAN BE USED TO FIND IMAGES IN
THE EXACT LOCATION OF AN OWNER'S
PERSONAL HOME.
AB SEVENTEEN EIGHTY ONE WOULD
PROVIDE A MODEST SOLUTION BY
REDACTING RESIDENTIAL ADDRESSES
AND PERSONAL SIGNATURES FROM ALL
FUTURE BUSINESS FILINGS POSTED
ON THE SECRETARY OF STATE'S ON
MY DATABASE.
ADDITIONALLY THE FULL UNALTERED
FILINGS WOULD STILL BE AVAILABLE
UPON REQUEST
THIS BILL STRIKES A BALANCE
BETWEEN PROTECTING BUSINESS
OWNERS PERSONAL PIPE AND PRIVATE
INFORMATION. AND PROVIDING
NECESSARY DISCLOSURE TO THE
PUBLIC I'M I PERSONALLY RECENTLY
UNDERWENT A A CIRCUMSTANCE WHERE
I'M FIGHTING WITH MY BANK WHERE
SOME WAS ABLE TO LIFT MY ADDRESS
AND MY SIGNATURE AND. GO AHEAD
AND AND DEPOSIT AN EIGHT
THOUSAND DOLLAR CHECK FOR MY
BUSINESS INTO A WELLS FARGO
ACCOUNT AND DEALING WITH THAT
TODAY. ACTUALLY TODAY SO IT'S
SOMETHING THAT IS REGULARLY
GOING ON IT'S SOMETHING WE HAVE
TO PROTECT OUR BUSINESSES SO I
RESPECTFULLY ASK FOR AN AYE VOTE
BUT BEFORE THAT IF SARAH BOOT
FROM THE CAL CHAMBER LIKE TO
TESTIFY.
SECOND.
RESPECTFULLY ASK YOUR AYE VOTE.
AND THIS THIS BILL DOES HAVE AN
AYE AYE RECOMMENDATION.
SO WE WILL CALL THE ROLL SINCE
WE HAVE A MOTION. NO.
I GUESS I'M A IS I'M SORRY.
SOME.
I UNDERSTAND THE SIGNATURE
ASPECT BUT.
WHERE IS THIS AVAILABLE FOR THE
PUBLIC TO ACCESO SAY?
NO OFFENSE BUT THEY WANT TO SUE
YOU BECAUSE YOU.
DID SOMETHING WRONG TO ME AS A
BUSINESS WHERE DO I FIND THAT
WELL YOU CAN GO CURRENTLY IT'S
ONLINE YOU CAN GO TO SENATOR
ANNOUNCED WEBSITE AFTER THIS
RIGHT AFTER THIS IT STILL WILL
BE AVAILABLE TO ANYONE THAT
WOULD LIKE TO GO IN AND RECEIVE
IT FROM.
BOOK.
PLEASE DUMP AND IF I MAY.
MADAM CHAIR OF.
MAX.
THIS BILL DOES NOT CHANGE.
THE ONLINE ACCESS TO
CORPORATIONS DESIGNATED AGENT
FOR SERVICE OF PROCESS
WHATSOEVER. WITH A COMPLETELY
DIFFERENT.
.
ACTION OF THE LOT THIS BILL THE
THING BACK THAT.
I'M I'M. IT IT IT FROM MY
UNDERSTAND SECRETARY STATE ARE
EACH HOUSE BUSINESSES ARE.
RECOMMENDS BUSINESSES NOT TO USE
THEIR HOME ADDRESS.
WELL ACTUALLY.
SPECIFICALLY CALLS OUT FOR YOU
TO PUT IN YOUR HOME ADDRESS.
ON THE FORM.
OKAY THAT'S NOT INFORMATION
OFTEN SECRETARY OF STATE'S
OFFICE SO EVERYBODY'S HOME
ADDRESS IS ON THE THE FORM THE
OWNERS OF THE CORPORATION.
IT ASKS YOU TO LIST WHAT YOUR
PERCENTAGE OWNERSHIP.
AND ALSO YOUR ADDRESS.
HATE THAT THE SACRED AYE I'M
GONNA STAY OFF THIS BILL TODAY
THE SECRETARY OF STATE'S OFFICE
HAS A DIFFERENT INTERPRETATION
OF WHAT THIS BILL DOES FROM MY
UNDERSTANDING OUR CONCERNS ABOUT
THIS BILL.
MY CONCERN IS QUITE FRANKLY IF
THE SECRETARY OF STATE'S OFFICE
IT'S A LOT LIKE WHAT WE HAVE TO
DO ON.
FAR FAR LICENSES WHILE YOU CAN
PUT YOUR HOME ADDRESS IN BE A
MEMBER THE BAR IN YOUR HOME
ADDRESS IS NOW ON OF PUBLIC
WEBSITE WHERE YOU CAN PUT
ANOTHER ADDRESS WHERE PEOPLE CAN
CONTACT YOU.
AND MY UNDERSTANDING IS THE
SECRETARY OF STATE'S OFFICE
ALREADY RECOMMENDS FOR FOLKS NOT
BUT THE RESIDENTS IF THERE'S
SOMETHING ELSE GOING ON I I'D
LIKE TO HEAR MORE AS THIS MAY BE
MOVES THROUGH.
SO THAT WERE ALL KIND OF
TALKING ABOUT THE SAME ISSUE I
THINK IT WOULD BE AYE. RATHER
EXPENSIVE OR CREATE ADDITIONAL.
.
CONCERNS FOR THE SECRETARY OF
STATE UNDERSTAND WHEN PEOPLE ARE
FILING A RESIDENTIAL ADDRESS
VERSES A BUSINESS ADDRESS AND IN
TO TO. PUT THEM IN THE THE
POSITION OF HAVING TO UNDERSTAND
WHAT A BUSINESSES USING THE
RESIDENTS AS THEIR BUSINESS LIKE
ADDRESS WHICH I THINK IS MY
UNDERSTANDING OF THE BILL OF
WHAT. WOULD BE BLACKED OUT SO WE
WE SHOULD HAVE SOME MORE
DISCUSSION TO STAY OFF OF IT
TODAY BUT THANK YOU FOR.
I THINK WE WE UNDERSTAND THE
BILL DIFFERENTLY ANSWER BILL SO
MAYBE BRIGHT WELL SO SO MY DO
ANY BETTER BECAUSE I HAVE TO
FILL THIS FORM OUT EVERY YEAR
EVERY YEAR WE HAVE TO SUBMIT IT
AND IT DOES ASK FOR THE. ACTUAL
BUSINESS ADDRESS IN THE NASS FOR
THE OWNERS AND WHAT PERCENTAGE
OF OWNERSHIP YOU HAVE IN THE
CORPORATION WHETHER IT'S AN LLC
SUBCHAPTER RATS OR SEE COURT.
AND THAT'LL LAST FOR YOUR
PERSONAL INFORMATION AND YOUR
PERSONAL SIGNATURE SO ALL OF
THAT IS READILY AVAILABLE IN A
PDF ONLINE RIGHT NOW WE CAN ALL
LOOK UP LIKE FOR EXAMPLE I THINK
WE LOOKED UP DAVID HADLEY'S AND
SENT IT OFF.
TO SHOW WHAT YOU KNOW HOW YOU
CAN JUST EASILY PULL ITS
INFORMATION IN A FIGHT WHERE
SOMEONE LIVES AND SEE THEIR
PERSONAL SIGNATURE AND WITH ALL
THE ISSUES THAT WE HAVE RIGHT
NOW WITH MAIL. THEFT AND
IDENTITY THEFT IN ALL OF THINGS
GOING ON THAT JUST SEEMS LIKE
WAY TOO INVASIVE TO BE ONLINE.
SO WE WERE JUST GETTING
CLARIFICATION THAT AND THAT
THAT%
IS THE PRACTICE OF BUT THE
SECRETARY OF STATE. DOES SAY
THAT THE ENCOURAGE A DIFFERENT
ADDRESS THEY REQUIRE THE
SIGNATURE ON AND I THINK THAT
THE ANALYSIS TRIES TO MENTION
THAT THAT MEANT THAT. PRACTICES
TO PUT THE.
THE ADDRESS. AND I UNDERSTAND
THE SIGNATURE OF NO PROM WITH
IT'S IT'S A.
.
ACCESSIBLE ADDRESS THAT I THINK
WE'RE GONNA HAVE TO DISCUSS
FURTHER.
AS A MEMBER STUNT.
THANK YOU ALONG SIMILAR LINES
CAN YOU QUANTIFY.
THIS ISSUE HOW OFTEN DOES THIS
HAPPEN.
NO I DON'T I DON'T HAVE THE DATA
TO KNOW THAT I WOULD HAVE TO
DEAL WITH LAW ENFORCEMENT AND
FIND OUT THAT I KNOW THAT WE
HAVE SEEN A SPIKE DRAMATICALLY
AND. AND PROPERTY CRIME WE'VE
SEEN A SPECTER MEDICALLY AND
THEN MAIL THEFT WITHOUT A SPIKE
DRAMATICALLY IN A LOT OF THESE
AT ITS MARTELL WHEN YOU'RE
COMING OFF OF THE RIGHT ONE AND
I'M NOT SURE THAT THAT'S NOT
RELEVANT BECAUSE YET THAT'S. THE
QUESTION IS OFF OF THIS FORM
AND.
HOW OFTEN THIS IS?
HAS BEEN AN ISSUE OF. RESPECT
AFFECT THE THAT YOU'VE SEEN AN
ISSUE WITH THIS I DON'T I DON'T
A LOT OF THESE FORMS FOR.
CLIENTS I DON'T KNOW ANYBODY WHO
PUTS A THEIR HOME RESIDENTS.
ON THEIR CORPORATE FILINGS THERE
WAS PUT BUSINESS I DO SIGN THE
FORM CRACKED THE DO SIGN THE
FORM. BUT. HAVE YOU WORKED WITH
SECRETARY STATES OFFICE TO
IDENTIFY THIS ISSUE AND.
AND FIGURE OUT WHAT THEY THEY
THINK AN APPROPRIATE REMEDY
WOULD BE WELL WE'VE JUST HEARD
TESTIMONY THAT PUTTING A A PO
BOX OR A ALTERNATE ADDRESS WOULD
BE AWAY A WORKAROUND AROUND
THAT.
BUT CERTAINLY STILL DOESN'T
ELIMINATE THE CHALLENGE THAT WE
HAVE WITH PUTTING A PERSONAL
SIGNATURE. ON THE FORM ITSELF
AND HAVING THAT YOU KNOW ACTUAL
VIRTUAL SIGNATURE THERE FOR
ANYBODY TO TO HELP THEMSELVES TO
AND I THINK THAT EVEN IF WE
DON'T I DON'T HAVE DATA
SPECIFICALLY SAYS HOW MANY
PEOPLE HAVE. SEEN FAST EXACTLY
FROM THIS FORM I DON'T KNOW THAT
THEY CAN QUANTIFY IT EXACTLY TO
THAT POINT BUT YOU KNOW TO MY
EXAMPLE I MEAN IT'S IT'S
SOMETHING THAT OCCURRED JUST.
RECENTLY AND IT'S YOU KNOW THEY
WERE ABLE TO GET THE ADDRESS GET
THE INFORMATION ALL OF THAT
WHETHER CAME FROM THAT FORM
SPECIFICALLY I DON'T KNOW. BUT
CERTAINLY IT'S A QUITE AN
INCONVENIENCE DOT TO SHUT DOWN A
BANK ACCOUNT MAKE SURE YOU GO
TRYING GET THE MONEY GO WORK
WITH THE DISTRICT ATTORNEY'S
OFFICE WORK WITH THAT. EUROPE
I'VE CHEFS DEPARTMENT MY POLICE
DEPARTMENT THERE'S THERE'S A LOT
OF WORK THAT GOES INTO THAT IT
SEEMS VERY SIMPLE REMEDY TO JUST
IF YOU'RE GOING TO REDACTED
ADDRESS OR REDACTED SIGNATURE TO
REDACT THAT ADDRESSES WHILE. BUT
BUT SO YOU DON'T EVEN KNOW IF IT
WAS THIS FORM THAT.
NO LED TO MY DEAR YOU HAVE
CONTENTS I DON'T KNOW BUT I DO
KNOW THAT I FEEL VERY VULNERABLE
AND EXPOSED HAVING MY PERSONAL
INFORMATION MY SIGNATURE
AVAILABLE FOR ANYBODY THAT USES
TO GO LOOK IT UP RIGHT THE
SECRETARY OF STATE'S WEBSITE NOW
I. WRITE I GET THAT BUT I WORRY
THAT THIS IS A.
PRESCRIPTIVE.
BILL
AND.
TO SOLVE A PROBLEM THAT I'M NOT
SURE HOW BROAD THAT PROBLEM IS
I'M NOT EVEN SURE. THAT THIS
FORMS IS PRETTY EASY FIGHT ALL
OF OUR ADDRESSES IF SOMEBODY
REALLY WANTS TO. THAT THAT'S NOT
A HARD THING TO DO.
AND.
SO.
PUTTING THIS REQUIREMENT ON THE
SECRETARY STATE WITHOUT HAVING
TALKED TO SECRETARY OF STATE
WITHOUT REALLY EVEN KNOWING IF.
THERE'S A PROBLEM HERE.
I'M KIND OF STRUGGLING WITH ON
THIS.
WELL I I WOULD I WOULD SUGGEST
I'M WHEN WE LOOK AT OUR DIGITAL
SIGNATURES COULD YOU MENTIONED
ALL OF US IN BEING ABLE TO FIND
ALL OF OUR DRESSES. WHEN WE SEND
OUT CERTIFICATES I DON'T KNOW
THAT ALL OF US USE OUR ACTUAL
SIGNATURES ON ALL OF THOSE
CERTIFICATES BECAUSE WE'RE
AFRAID OF IDENTITY THEFT ARE
USING OUR OWN SIGNATURES.
YEAH INAPPROPRIATELY AND AS FAR
AS OUR OWN PERSONAL ADDRESSES WE
CHOOSE TO BE ELECTED OFFICIALS
SO WE PUT OURSELVES OUT THERE IS
ELECTED REPRESENTATIVES OF THE
PUBLIC BUSINESS OWNERS HAVING
ALL OF THIS INFORMATION ABOUT
THEIR PRIVATE. PRIVACY EXPOSED
THE WAY THAT IT IS CURRENTLY
MAYFIELD'S UNNECESSARY FEELS
LIKE THEY SHOULD HAVE THAT LEVEL
OF OUR PROTECTION PROVIDED TO
THEM BY THEIR OWN GOVERNMENT
THAT THEY'RE PROVIDING
INFORMATION TO.
WHAT MEMBERS ANY OTHER QUESTIONS
OR COMMENTS?
RIGHT NOW CNN I WILL.
HOW THE SECRETARY CULTURAL?
AND I'LL SEE THE MOTION BEFORE
THE MOTION IS I DO PASSED TO
APPROPRIATIONS.
AB SEVENTY EIGHTY ONE. DO PASSED
COMMITTEE ON APPROPRIATIONS.
LAMONT BY LIMON I.
CHEN.
CHEN AYE ACOSTA.
ACOSTA AYE BURKE.
CALDERON.
CALDERON AYE CERVANTES.
SAMANTHA SIGH CHOI AYE.
CHOI AYE.
GONZALEZ FLETCHER.
GRAYSON.
GRAYSON AYE.
STONE.
STONE NO.
WEBER.
WEBER I.
BUT THE BILL IS OUT TO
APPROPRIATIONS WITH AM EIGHT TO
ONE. THINKING I LEFT.
ALRIGHT AND NOW I WILL HAND
OVER.
THE MEETING TO THE MEASURE
.
MADAM CHAIR TO PLEASURE.
I THINK A VICE CHAIR
.
I THINK YOU AND MEMBERS UPON
ACCEPTING AND MY NEW ROLE AS
CHAIR OF THIS COMMITTEE I HAVE
HEARD A COMMON REFRAIN FROM
FELLOW MEMBERS.
CONSUMER ADVOCATES REGULATORS
RESPONSIBLE LENDERS AND THE
MEDIA.
SOMETHING NEEDS TO BE DONE ABOUT
SMALL DOLLAR CONSUMER LOANS IN
CALIFORNIA.
THINK.
THANK YOU.
AT TODAY I AM PRESENTING AB
TWENTY NINE FIFTY FUTURE JUST
HAD ALONG ONE OF THE RISKIEST
AREAS IN THE SMALL DOLLAR LOANS
SPACE. I HAVE WITH ME AT TODAY I
HEAR A REPRESENTATIVE FROM THE
GREEN LINING INSTITUTE THAT IS
GOING TO TESTIFY IN SUPPORT THE.
EACH YEAR
AND AND THANK YOU ICE CHAIR PLAN
FOR HOLDING US AND.
NO MEMBERS THIS COMMITTEE.
I FIRST I'M GOING TO APOLOGIZE
BECAUSE.
.
AND BE LATE FOR DINNER WITH MY
MOM I HAVE TO GIVE AN EXCUSE.
AND SUMMIT TAKE ITSELF FEET AND
THE STATE OF MIND. GOOD EXCUSE.
HAD HERE ON COMMITTEE TESTIFYING
AND. YOU KNOW.
ARE TO BE A GOOD SIGN SO.
HI MOM.
THAT'S SAID NEVER A DULL MOMENT.
WHAT OR WHO?
EVERY FEW
BECAUSE OF I THREE THINK.
I APPRECIATE YOUR DISCRETION
VICE CHAIR AND SO MANY WITH
TEDDY KING NAM MILLER AND I AND
THE ECONOMIC EQUITY DIRECTOR FOR
THE GREEN LINING INSTITUTE A
GREEN MINING IS THE SOLUTION TO
REDLINING. AND WE ADVANCE
ECONOMIC OPPORTUNITY FOR PEOPLE
COLOR THROUGH ADVOCACY AND
COMMUNITY AND COALITION BUILDING
RESEARCH AND LEADERSHIP
DEVELOPMENT.
OUR MISSION IS TO CLOSE THE
RACIAL WEALTH GAP AND THE
CREATION OF RESPONSIBLE FAIR
ENOUGH FOR BELINDA PRODUCTS IS
CRITICAL TO WEALTH CREATION AND
COMMUNITIES OF COLOR.
AB TWENTY NINE FIFTY THREE IS
ONE STEP IN THE RIGHT DIRECTION
BECAUSE IT ELIMINATES THE
PRACTICE OF CHARGING TRIPLE
DIGIT INTEREST RATES ON CONSUMER
LOANS THAT REQUIRE CONSUMERS TO
PLEDGE THEIR VEHICLES OF
SECURITY ON THE LEFT.
THE OUT HAD A LITTLE PRODUCT IS
AMONG MOST PREDATORY FINANCIAL
PRODUCTS CURRENTLY PERMITTED
INSIDE CALIFORNIA.
ACCORDING TO THE DB ó IN
TWENTY SIXTEEN ADULT TITLE
LENDERS CONDUCTED OVER TWENTY
THOUSAND REPOSSESSIONS.
COMPARED TO HUNDRED EIGHT
THOUSAND EIGHTY LOANS ORIGINATED
THAT YEAR.
SUGGESTION THAT ALMOST ONE IN
FIVE AUTO BORROWS LOST THEIR
VEHICLE.
NEARLY SIXTY PERCENT OF ALL
TITLE LOANS AT INTEREST RATES
EXCEEDING HUNT PERCENT APR. AN
ADDITIONAL ONE THIRD OF LOANS OF
AN INTEREST RATE ABOUT SEVENTY
PERCENT PR.
THESE EXORBITANT INTEREST RATES
COUPLED WITH LENDERS FAILURE TO
KIDS
CONFIRM BORROWS ABILITY REPAID
WITH HIGH RATES OF DEFAULTS AND
SUBSEQUENTLY. VEHICLE
REPOSSESSIONS.
NOT THE FEDERAL LEVEL I WITH
THAT TRUMP ADMINISTRATION'S
AGENDA TO DISMANTLE.
BUT THE REGULATORY STATE OF THE
CONSUMER FINANCIAL PROTECTION
BUREAU'S ABILITY TO RATE AND
ABUSIVE PRACTICES IN OUT OF
THAILAND IN INDUSTRIES BEEN
UNDERMINED.
SO IT'S REALLY UP TO THE STATE
OF CALIFORNIA TO TAKE A STAND ON
BEHALF OF CONSUMERS.
WITH THE LOSS OF THE CAR IN A
PRIMARY. MODE OF TRANSPORTATION
THE ABILITY TO SECURE AND
MAINTAIN EMPLOYMENT INCOME AND
OVERALL ECONOMIC SECURITY IS
FURTHER JEOPARDIZED ORDER CASH
STRAPPED BORROWERS.
COMMUTERS OF COLOR PARTICULARLY
VULNERABLE TO BEING INJURED BY
UNREGULATED OUT OF TIME ALONE.
AND THEY'LL TITLE OF INDUSTRY IS
ACTUALLY WORKING TO WIDEN THE
RACIAL WEALTH GAP WHICH IS THE
DISPARITY OF WEALTH HOLDEN BIKE
RACE.
WE SEE THE CREDIT HISTORIES OF
LATINOS AND BLACKS AND HAVING
TAKEN A HIT BECAUSE OF LONGTIME
DISCRIMINATORY LENDING
PRACTICES.
PREDATORY LENDERS TARGET PEOPLE
OF COLOR AS THE OVERWHELMINGLY
OPERATE IN BLACK AND THAT YOU
KNOW NEIGHBORHOODS AND THESE
LETTERS EXPLOIT THE FACT THAT
PEOPLE OF COLOR ARE MORE LIKELY
TO BE UNDER BANKED AND UNBANKED
REDLINING.
THE PRIVATE SECTOR PRACTICE OF
DENYING FINANCIAL SERVICES AND
PRODUCTS TO NEIGHBORS OF COLOR.
AND THE REASON THAT GREEN LINE
EXISTS.
AS A RESPONSE TO THAT.
IN FACT ACCORDING TO THE FBI
SEES NATIONAL SURVEY OF UNBANKED
AND UNDER BANKED HOUSEHOLD IN
TWENTY FIFTEEN BLACKS AND
LATINOS ARE FIVE TIMES MORE
LIKELY BE UN BANKED. INTO TITLE
LIKELY BE UNDER BANK COMPARED TO
WHITES.
AND THAT'S IMPORTANT THAT
BORROWS OF COLOR TWO TO THREE
TIMES MORE LIKELY TO USE AN
ALTERNATE LOAN COMPARED TO
WHITES.
SO MANY LOW INCOME TO MEET
HOUSEHOLDS OF COLOR VEHICLE MAY
BE THE ONLY ASSET AND I AM OF
WEALTH AND VEHICLE REPOSSESSION.
WOULD DECIMATE WEALTH FOR THE.
FOR THESE FAMILIES.
THE AB TWENTY NINE FIFTY THREE
IS ONE STEP TOWARDS ADDRESSING
OUR GROSCHEN ARE GROWING MUCH
WEALTH GAP BUT MORE CLOSELY
REGULATED THE PREDATORY LENDERS
OPERATE IN OUR COMMITTEES.
I PROTECT.
ANYMORE WITNESSES IN SUPPORT.
I WITNESSES IN OPPOSITION.
SEEING NONE.
MEMBERS VERY APOLOGIZE.
WHAT IS NOT POSITION?
OF WE JUST STATE YOUR NAME WE
HAVE THE KEY FOR IN YOUR
POSITION.
AND WHAT IS OPPOSITION PLEASE OF
TABLE OUT.
IF OF THE.
IN THIS ROOM THREE
.
GOOD AFTERNOON.
I'M SORRY THIS.
CHAIR.
I'M.
SORRY.
I'M CARRIE CARBONE THE CHIEF
LEGAL OFFICER INSISTS ON.
I'M THE CHIEF LEGAL OFFICER FOR
THE TEAM NEXT FINANCE FAMILY OF
COMPANIES. UNDER THE TITLE NEXT
GRAND WE DO BUSINESS IN SIXTEEN
STATES.
I SPENT MY CAREER REPRESENTING
BANKS AND REGULATED CONSUMER
LENDERS BOTH ONLINE AND RETAIL
AND I THANK YOU FOR ALLOWING ME
TO APPEAR TODAY. WITH THE BEFORE
YOU TO DISCUSS OUR OPPOSITION TO
ASSEMBLY BILL TWENTY NINE FIFTY
THREE.
TITLE MAX IS A LICENSED
CALIFORNIA FINANCING LOWLANDER
WITH SIXTY FOUR RETAIL LOCATIONS
IN NEARLY TWO HUNDRED TEAM
MEMBERS ACROSS THE STATE.
IN TWO THOUSAND THIRTEEN WE
OPENED OUR FIRST CALIFORNIA
STORE WE'RE PROUD TO HELP
CALIFORNIA RESIDENTS MEET THEIR
CREDIT NEEDS THROUGH THE
RESPONSIBLE USE OF EMERGENCY
LOANS.
DYNAMAX OFFERS FULLY AMORTIZING
SIMPLE INTEREST INSTALLMENT
LOANS SECURED BY THE EQUITY IN
OUR BORROWERS MOTOR VEHICLES.
OUR CUSTOMERS ARE HARD WORKERS
WITH LIMITED ACCESS TRADITIONAL
BANK LOANS AND OTHER CREDIT
PRODUCTS.
IN MANY CASES THEY PREVIOUSLY
APPLIED AND WERE DENIED FOR
OTHER FORMS OF CREDIT SUCH AS
PERSONAL LOANS BEFORE THEY
VISITED OUR STORES.
IN GENERAL CONSUMERS WHO COME TO
TITLE MAX FURTHER CREDIT TECH
NEEDS TEND TO BE PART OF THE ONE
IN FOR CALIFORNIA RESIDENTS WHO
ARE UNBANKED OR UNDER BENT.
WE BELIEVE THAT ALL CALIFORNIANS
REGARDLESS OF CREDIT HISTORY
DESERVE ACCESS TO A RANGE OF
REGULATED CREDIT PROXY PRODUCTS.
TIMEX OFFERS A SECURED LOAN
PRODUCT THAT IN ADDITION TO
MEETING RIGOROUS STATE AND
FEDERAL REQUIREMENTS INCLUDES
SEVERAL FEATURES THAT ARE
BENEFICIAL TO BORROWERS.
CUSTOMERS CAN PREPAY THEIR LOAN
IN WHOLE OR IN PART AT ANY TIME
WITHOUT PENALTY.
IN FACT MOST OF OUR CALIFORNIA
CUSTOMERS SUCCESSFULLY PAY OFF
THEIR LOANS IN LESS THAN EIGHT
MONTHS.
MOST IMPORTANT WE DON'T SU
CUSTOMERS WHO DON'T PAY US BACK
OUR ONLY RECOURSE IS TO THE
MOTOR VEHICLE COLLATERAL.
WE APPRECIATE THAT THE COMMITTEE
IS CONCERNED ABOUT VEHICLE
REPOSSESSION RATES.
OUR RECOVERY RATE IS LESS THAN
THE STATE AVERAGE THOUGH WE
ALWAYS STRIVE FOR A RATE TO BE
LOWER.
FEEL RECALL RECOVERY IS A LAST
RESORT AND ARE EMPLOYEES ARE
TRAINED TO DO EVERYTHING THEY
CAN TO AVOID REPOSSESSION.
IN THE ABSENCE OF FRAUD WE
REPOSSESS OF VEHICLE ONLY WHEN
THE ACCOUNT IS AT LEAST A MONTH
PAST DUE. AND WE'VE LOST CONTACT
WITH THE CUSTOMER.
AS MELISSA MENTIONED BEFORE FOR
SPEEDY WE OBVIOUS WE ARE EXTEND
PAYMENT DUE DATES AND WORK WITH
CUSTOMERS AS MUCH AS POSSIBLE TO
SUPPORT A SUCCESSFUL REPAYMENT.
CONTRARY TO POPULAR BELIEF IN
CALIFORNIA WE CONDUCT A DETAILED
UNDERWRITING AND ABILITY TO
REPAY ANALYSIS AND WE DON'T MAKE
LOANS BASED ONLY ON THE VALUE OF
THE VEHICLE.
AS PART OF OUR UNDERWRITING
REVIEW AND CONSIDER CREDIT
BUREAU DATA ABOUT APPLICANTS AS
WELL AS APPLICANT INCOME AND
EXPENSE INFORMATION.
IN TWO THOUSAND SEVENTEEN WE
APPROVE FEWER THAN FORTY PERCENT
OF CALIFORNIA APPLICANTS FOR
ALONE. WHICH REFLECTS OUR
COMMITMENT TO APPROPRIATE
UNDERWRITING AND COMPLIANCE WITH
THE EXPRESS STATUTORY ABILITY TO
REPAY REQUIREMENTS OF THE CFL.
WE UNDERSTAND THAT THE INTENT OF
AB TWENTY NINE FIFTY THREE IS TO
PROTECT CONSUMERS BUT THE RECAP
PROPOSED IN THIS BILL WOULD
ELIMINATE THE STATE'S TITLE IN
INDUSTRY AND WITH IT A VIABLE
CREDIT ALTERNATIVE.
FOR MANY BORROWERS IN NEED.
LAST YEAR WE MADE LOANS TO OVER
TWELVE THOUSAND CALIFORNIANS.
UNDER THE PROPOSED RATE CAP WE
WOULD NOT HAVE BEEN ABLE TO HELP
THOSE CONSUMERS.
TO MEET THEIR NEEDS MANY THOSE
BORROWER CERTAINLY WOULD HAVE
BEEN FORCED TO SELL THEIR MOTOR
VEHICLES OR TURNED UNREGULATED
UNLICENSED LENDERS SINCE BANKS
AND CREDIT UNIONS FOR THE MOST
PART DON'T LEND TO THEM.
MUCH EMPHASIS IS MADE ON TRIPLE
DIGIT APR THAT ARE COMMON TO
EMERGENCY CREDIT PRODUCTS.
THE AVERAGE PAYDAY LOAN IN
CALIFORNIA HAS AN AP ARE IN
EXCESS OF FOUR HUNDRED PERCENT
WHILE SOME UNSECURED LOAN
PRODUCTS OFFERED BY MORE
SOPHISTICATED ONLINE LENDERS.
CAN BE CLOSER TO ONE HUNDRED
PERCENT PER ANNUM OR LESS.
OUR CALIFORNIA SECURED LOAN
PRODUCT WITH AN AVERAGE CONTRACT
RATE ACROSS ALL LOAN AMOUNTS IS
JUST UNDER ONE HUNDRED FIFTY
PERCENT PER YEAR. WHICH FALLS ON
THE LOWER END OF THE RATE
SPECTRUM.
NOTWITHSTANDING THE SO CALLED
HIGH RATES PROFIT MARGINS FOR
STATE LICENSE RETAIL SUBS ARM
SUBPRIME LENDERS LIKE TITLE MAX.
TYPICALLY ARE LESS THAN LARGE
RETAIL BANKS.
FRANKLY DUE TO THE SIGNIFICANT
CAPITAL WE'VE INVESTED IN
CALIFORNIA SINCE TWO THOUSAND
THIRTEEN AND CONSIDERING THE
HIGH OPERATING IN REAL STATE
RELATED COSTS IN CALIFORNIA. ARE
CALIFORNIA SUBSIDIARY MAY
FINALLY TURNED ITS FIRST PROFIT
IN TWO THOUSAND EIGHTEEN THOUGH
THE LOAN PORTFOLIO ON ITS OWN IS
PROFITABLE.
S. STORE IN THE LOS ANGELES MAN
MSA CAN COST OVER THIRTY FIVE
THOUSAND DOLLARS A MONTH TO
OPERATE CONSIDERING LEASE COST
UTILITIES EMPLOYEE SALARIES AND
BENEFITS. AND OTHER GENERAL
OPERATING EXPENSES THAT DOESN'T
INCLUDE THE FUNDS NEEDED TO MAKE
LOANS OR LOAN ORIGINATION
SERVICING OR COLLECTIONS COSTS.
WE ARE COMMITTED TO OUR
CALIFORNIA CUSTOMERS EMPLOYEES
AND LOOK FOR TO SERVING THE
ALTERNATIVE CREDIT NEEDS OF
CALIFORNIA RESIDENTS FOR YEARS
TO COME. AND SET OF ARBITRARY
RATE CAPS PLEASE CONSIDER
REASONABLE REGULATIONS THAT
PROTECT CONSUMERS AND ELIMINATE
BAG ACTORS WHILE PRESERVING
ACCESS TO A CONVENIENT AND
REGULATED LOAN OPTION. WE URGE
YOU TO VOTE NO ON TWENTY NINE
FIFTY THREE THANK YOU.
AB CHAIR MISTER VICE CHAIR THAT
MY NAME IS JABOT COVERT AND I'M
THE AT SENIOR VICE PRESIDENT
FOR.
CHECKING THE CASHIN WELL LICENSE
LINDER ALL ACROSS THE COUNTRY
INCLUDING HERE IN CALIFORNIA.
HAPPILY SO AND WE ARE OPPOSED TO
THE BILL IN ITS CURRENT FORM
MADAM CHAIR BUT WE ARE EXCITED
ABOUT WORKING WITH YOU FURTHER
ON.
THE PROCESS IS WE GO FORWARD AND
I THINK MANY OF YOU ON THE
COMMITTEE INCLUDING THE CHAIR I
THANK YOU ALL OF. A LOT MOST OF
YOU HAVE BEEN IN ONE OF OUR
STORES BEFORE YOU UNDERSTAND OUR
PRODUCTS AND.
I THINK THIS CONVERSATION'S BEEN
VERY HELPFUL AND IT IS
HISTORICAL I FEEL LIKE UPSET
MISTER SEVERAL TIMES OVER THE
YEARS AND I HAVE.
I KNOW IT'S LATE WE'VE GOT
DINNERS WITH MOM AND BASKETBALL
GAMES TO GO SEE BUT I JUST WANNA
MAKE A COUPLE OF QUICK POINTS IN
OUT. ON LEAVE IT ALONE BUT YOU
KNOW IT.
WE REPOSSESSED LESS THAN THREE
CARS PER LOCATION LAST YEAR.
I DON'T KNOW WHAT THAT BIG
NUMBERS FROM THE DB ó I DON'T
KNOW WHO IT IS THAT'S DOING THAT
BUT IT'S NOT MY COMPANY.
THAT'S NOT THE WAY WE DO
BUSINESS.
THAT'S NOT WHAT WE DO ARE
FEDERAL REGULATOR PUT OUT A BI
ANNUAL REPORT TODAY THAT COVERED
THE ENTIRE COUNTRY.
AND THE TALK ABOUT COMPLAINTS OF
CONSUMERS FOR EVERY FINANCIAL
PRODUCT IN AMERICA.
TITLE LOANS WAS POINT.
ONE PERCENT.
OF ALL THE COMPLAINTS THAT WHAT
THE VETERAN YOU LATER POINT ONE
PERCENT.
SO I I DON'T THINK OUR CUSTOMERS
ARE COMPLAINING ABOUT THE
PRODUCTS
BUT I POINT THIS OUT REAL QUICK.
WE TALKED ABOUT MARILYN YOUNG
BROTHER MARYLAND YOU DON'T WHY
MARYLAND OF HAVING LENDING
BECAUSE IT'S THIRTY THREE
PERCENT. THIS BILL WILL PUT US
AT A BUSINESS AS IS MADAM CHAIR
BUT WE ARE OPEN TO REFORM WE
BELIEVE THERE'S A LOT OF THINGS
THAT WE CAN TALK ABOUT
DISCLOSURES AND I WAS OF A POINT
OF. CONTENTION REPOSSESSIONS A
POINT OF CONTENTION THINGS THAT
WE ARE VERY VERY MUCH IN FAVOR
OF TALKING WITH YOU ABOUT SO
WITH THAT MISTER VICE CHAIR I
WOULD LIKE THE ABOUT TIME TO.
OKAY IT JUGGLING REPRESENTING
COMMUNITY LOANS OF AMERICA THAT
OF MEDICARE.
THE.
EXIT LA THINGS TO SAY THAT I
THINK FOR THE MOST PART THE
THINGS THAT I WAS GOING TO SAY
HAVE ALREADY BEEN SET.
.
I WILL SAY OUR CUSTOMERS.
TEND TO BE IN THREE DIFFERENT
CATEGORIES.
THEY TEND TO BE INDEPENDENTLY
OWNED BUSINESSES WHO DON'T HAVE
ACCESS TO CAPITAL.
AND WHO NEED ACCESS TO CAPITAL
OFTENTIMES THEIR VEHICLE THEIR
TRUCK IS THEIR PRIMARY ASSET.
AND THEY NEED THAT ABILITY TO
HAVE ACCESS TO CAPITAL TO
PERFORM THEIR JOB WHETHER IT'S
IN THE PAINTING BUSINESS A
LANDSCAPE BUSINESS.
UP THE SECOND.
MAJOR.
PART OF OUR BUSINESS ARE IN FACT
PEOPLE THAT ARE UNBANKED
PEOPLE WHO DON'T HAVE THE ACCESS
TO GO TO TRADITIONAL FINANCIAL
INSTITUTIONS.
BECAUSE THEY ARE UNBANKED.
AND THE THIRD ARE THOSE PEOPLE
WHO HAVE CREDIT SCORES.
BELOW SIX TWENTY.
MAYBE SIGNIFICANTLY BELOW.
AND BECAUSE OF THAT OR HAVE NO
CREDIT HISTORY AT ALL.
FIND IT VERY DIFFICULT IF NOT
IMPOSSIBLE TO GO TO TRADITIONAL
FINANCIAL.
EARLIER TODAY BY HAND DISCUSSING
ASSEMBLYMAN BECAUSE BILL I THINK
THE COMMITTEE.
POSE THE RIGHT QUESTION
AND THAT IS WHAT IS THE RIGHT
BALANCE BETWEEN ACCESS.
AND NOT.
CREATING UNINTENDED CONSEQUENCES
FOR ACCESS
VERSUS MAKING SURE THAT.
THE CONSUMER TAKING ADVANTAGE OF
ONE OF THESE PRODUCTS ISN'T
ESSENTIALLY SETTING THEMSELVES
UP FOR THIS.
VORTEX OF DEBT.
AND THE STEPS SPIRAL INTO
SOMETHING THAT CAN NEVER BE PAID
OFF.
THAT BALLOTS IS I THINK WHAT'S
IMPORTANT.
AN INTEREST RATE CAP BY ITSELF
DOESN'T REALLY PROVIDE.
WHAT IT WILL DO
IS IT WILL MAKE SURE THAT A LOT
OF ACCESS TO CREDIT WILL NO
LONGER BE ACCESSIBLE?
ON THE OTHER HAND.
BALANCING.
THIS PRODUCT WITH A VARIETY OF
TOOLS THAT I THINK ARE AVAILABLE
AT THIS COMMITTEES.
URGING I THINK MAKES A LOT OF
SENSE.
I THINK YOU'VE HEARD SOME OF THE
WITNESSES TODAY TALK ABOUT WHAT
ARE THE POLICIES RIGHT NOW WHAT
WHAT DO WE DO IN THE BUSINESS.
THOSE THINGS DON'T EXIST IN
RULES AND STATUTES OR
REGULATIONS BY AND LARGE.
THINGS LIKE NON RECOURSE LOANS
HOW DO YOU STOP THAT DEATH
SPIRAL OF.
OF DEBT.
THE FIRST THING IS TO MAKE SURE
THAT THAT THESE LOANS ARE NON
RECOURSE LOANS WHICH MEANS
YOU'RE NOT GOING TO BE GOING
AFTER THE PERSON AND FORCING
THEM INTO BANKRUPTCY.
OF IF WE REPOSSESS THE CAR AND
OUR. REPOSSESSION RATE IS
SIGNIFICANTLY LOWER THAN WHAT
WAS DISCUSSED BUT IF THAT IN
FACT IT'S A CONCERN AND
RIGHTFULLY SHOULD BE IF IT.
IF REPOSSESSION RATES ARE TWENTY
PERCENT THAT'S TOO HIGH.
IF WE REPOSSESS THE CAR WE'VE
ALREADY LOST.
IT'S A LOSING PROPOSITION FROM
THE WORD GO.
WE DON'T WANT TO KNOW HOW TO
HAVE A NOR DO WE LIKE WE
POSSESSING A CAR BECAUSE WE
ALREADY LOST MONEY WE'RE NEVER
GOING TO RECOVER WHAT'S BEEN
LOST.
IN TERMS OF CAPITAL.
BUT MAKING SURE THAT THE LOAN IS
A NON CREE RECOURSE LOAN.
STOPS THE DESPOT OR RIGHT THERE.
OF.
NEVADA HAS THE STATUE.
THAT IS CENTURY PROVIDES AN
OFFERING.
TUMORS AND THAT OFFRAMP.
STOPS
TOLLING OF THE INTEREST RATE.
SO THAT IF IN FACT THE CONSUMER
FIND THEMSELVES IN A PLACE WHERE
WHERE THEY ARE LATE OR IN
DEFAULT. THERE'S A WAY TO SAVE
TIME OUTLETS RESTRUCTURED CREATE
A REPAYMENT PLAN THAT DOESN'T
ADD MORE INTEREST TO THE LAW.
.
VERIFYING THE VALUE OF THE
VEHICLE NEAR AT TWO MINUTES
BECAUSE NONE OF US ARE OUT YOU
KNOW WHEN YOU'RE RIGHT THAT I'M
GONNA HAVE.
I HAVE SIX OTHER THINGS HERE.
ALL WHICH I THINK A GOOD
BUSINESS PRACTICES
WATCHING LOAN TO VALUE.
MAKING SURE THAT PEOPLE AREN'T
MONNING MORE THE ACTUAL VALUE OF
THE AUTOMOBILE THAT.
TRIBUTES TO THAT THAT'S WHAT.
.
HAVING UNDERWRITING.
IN THAT CAN TO INCOME RATIOS.
THAT CAN SERVE TO HELP BUT BE A
BETTER JUDGE OF WHETHER SOMEBODY
HAS THE ABILITY TO REPAY NOW.
IT BE VERY CAREFUL WITH THAT
BECAUSE WHEN YOU HAVE STRICT
DEBT TO INCOME RATIOS. YOU'RE
LEAVING PEOPLE ON THE MARGINS
AND PUBLIC PEOPLE THAT YOU
WOULDN'T WANT TO SO.
BUT THESE ARE ALL THINGS THAT
CAN BE DONE WE CAN HAVE THIS
DIALOGUE.
ITEM AS ASSEMBLY WOMAN WEBER WAS
TALKING ABOUT HISTORY I WAS HERE
FIVE YEARS AGO TESTIFYING ON A
BILL SIMILAR TO THIS.
AT THAT TIME WE DIDN'T HAVE THE
DISCUSSION ABOUT.
OTHER THINGS TO DO WHAT WOULD BE
SMART TO DO THE ARGUMENT WAS
STRICTLY ABOUT AN INTEREST RATE.
I THINK NOW THE ENVIRONMENTS
CHANGE THE WORLD'S CHANGED.
WE CAN HAVE THAT DISCUSSION
ABOUT WHAT ARE THOSE THINGS THAT
WE SHOULD BE DOING HERE.
TO STOP THAT DEATH SPIRAL OF.
AND
AND I AM HERE ON BEHALF OF IBM
WANTS AMERICA TO SAY WE WANT TO
BE A PART OF THAT DISCUSSION WE
WILL CONTRIBUTE TO IT WE WILL
MAKE SUGGESTIONS.
ABOUT THINGS THAT WE THINK WOULD
MAKE SENSE AND.
LOOKS FORWARD TO HAVING THAT
DISCUSSION ENSUES.
THANK YOUR A MUCH OTHER
WITNESSES IN OPPOSITION PLEASE
JUST TAKE YOUR NAME AND
POSITION.
ALICIA PRIEGO ON BEHALF OF LAMAR
IN OPPOSITION.
WELL THOMAS LEONARD EXECUTIVE
DIRECTOR CALIFORNIA FINANCIAL
SERVICE PROVIDERS ASSOCIATION IN
OPPOSITION.
PRINT MATS AND ON BEHALF OF
MONEY TREE CURRENTLY IN
OPPOSITION WILLING TO WORK WITH
THE CHAIR AND OTHERS ON THIS
ISSUE THANK YOU.
YOU CAN REYES OUR MIKE UP IF
YOU'D LIKE HA HA HA HA.
MELISSA SO BEAR WITH CARRIER
FINANCIAL IN OPPOSITION.
ROB GREASER WITH CALIFORNIA
CHECK CASHING STORES IN
OPPOSITION OF THE SLUDGE.
ARE REQUESTING OF HAVE EVENTS
AMERICAN OPPOSITION.
I JUST HEARD DOUBLE CHECK AYE
ZERO ONE TESTIFYING IN SUPPORT
OF THE BILL.
SACRAMENTO ASIDE FROM YOURSELF.
ANYONE IN THE ON IN GATHER MY
FOLKS. ALWAYS IF THEY WANT THAT
THEY CAN
OKAY.
I'M.
YEAH. I THINK YOU MADAM CHAIR
FOR I YOU WORK IN THIS AREA. AND
I'VE HAD A LOT OF MEETINGS
HOW WITH REGARDS TO THIS ISSUE
PAYDAY LENDING IN GENERAL. AND I
THINK WHAT I REALLY WANT.
I LOVE WHEN I HEAR WE WANT TO
WORK IT OUT AND WE WANT TO
FIGURE IT OUT I THINK ALL OF OUR
CONCERNS ARE AS LIKE.
YOU KNOW WE'RE SO USED TO THE.
WE JUST CAN'T DO I'M SORRY AND.
AND WE GET A DIFFERENT OUTCOME
WHENEVER WE HEAR THAT THAT THAT.
THAT ARGUMENT SO I GUESS O. O.
WOULD THAT STANTON SAW IT WHEN I
GUESS IS FOR MYSELF AND I KNOW A
LOT OF MEMBERS ON THIS.
COMMITTEE I AM JUST IN THIS
HOUSE WE REALLY WANT THAT
COMMITMENT THAT WERE YOUR TRULY
GONNA GET. DOWN AND DIRTY WITH
US SO THAT WE CAN FIGURE OUT.
WHAT THE ACTUAL REALITY OF THE
SITUATION IS SO THAT WE CAN
MAKE?
REASONABLE DETERMINATIONS AS TO
THAT THE FUTURE OF THESE
PRODUCTS IN THE STATE OF
CALIFORNIA MAKING SURE THAT WE
ARE KEEPING ACCESS WHILE ALSO AT
THE SAME TIME. MAKING SURE THAT
OUR WE HAVE PROTECTIONS IN PLACE
FOR CONSTITUENTS THE PEOPLE THAT
WERE THE ONES RESPONSIBLE FOR
REPRESENTING IN THAT WERE THE
ONES.
THAT ARE ACCOUNTABLE TO.
AND SO IF IT IS A GOOD FAITH
HONEST EFFORT ON YOUR PART
YOU'RE GONNA FIND A LOT OF
WILLING PARTICIPANTS ON THIS AND
TO FIND OUT.
THAT YOU KNOW WHAT THE BEST
PATH FORWARD AS PER REALLY WANT
TO STRESS THAT. I THAT YOU WERE
COMING FROM A POSITION WHERE
CHANGES HAPPENING.
AND WE ARE DETERMINED TO CREATE
CHANGE.
AND SO UNDERSTANDING THAT THAT'S
WHERE WE'RE COMING FROM.
WE REALLY WANT ATTITUDE TO MAKE
SURE THAT THAT CHANGES SOMETHING
THAT IS EQUITABLE FOR EVERYONE
AS A BUSINESS YOU AGAIN LIKE I
SAID BEFORE YOU HAVE THE RIGHT
TO EARN A DOLLAR. AND AND TO PAY
YOUR EMPLOYEES.
A LIVABLE WAGE AND CONSIDER.
YOU KNOW THE US IS WILLING
PARTICIPANTS AS WELL AS THIS
CHAIR YELLOW.
VERY PROGRESSIVE CHAIR OF A
COMMITTEE THAT'S WILLING TO TO
UNDERSTAND AND LEARN THIS
BUSINESS SO TAKE ADVANTAGE OF
THAT. I HAVE A VERY.
WILLING PARTICIPANT IN THIS
AUTHOR TO FIGURE OUT WHAT AT
WHAT WHAT A FAIR PLAY STAND UP
IS SO PLEASE TAKE ADVANTAGE OF
THAT. AND KNOW THAT IF THERE'S A
GOOD FAITH EFFORT ON YOUR PART
THERE WILL BE A GOOD FAITH
EFFORT ON OUR PART TO TRY AND
CREATE A FAIR PROGRAM.
AND I THINK YOU FOR YOUR
TESTIMONY AND AGAIN MADAM CHAIR
I THINK YOU FOR TIME IN THE BILL
IN THE FOR DEVOTING AYE.
AND SO ON INTEREST DOWN.
SO SO YOU MENTION THAT YOU DO
BUSINESS IN OTHER STATES AS
WELL.
WHERE IN SIXTEEN STATES WITH THE
TITLE MAX BRAND AS WELL AS
FLORIDA UNDER A DIFFERENT BRAND
NEW YORK?
NOT IN NEW YORK OKAY WHAT ABOUT
CHECK INTO CASH.
THAT SAME ANSWER NOT NEW YORK.
WANNA.
IT IS
THERE'S NOT A INTEREST RATE
THERE'S NOT A INTEREST ARAB FEE
AMOUNT THAT WOULD MAKE IT A
VIABLE PRODUCT.
OKAY WE DON'T OPERATE IT'S NOT
FIVE FINANCIALLY
VIABLE TO DO SO THAT SCRIPT.
SIMMONS ON THAT THAT THERE'S A
FALLACY THAT THERE SOME OUR ALL
THE STORES THAT ARE OUT THERE
MAKING TITLE LOANS THIRTY SIX
PERCENT AND. THERE CERTAINLY ARE
ZERO STORES DOING IT AT A PROFIT
THIRTY SIX PERCENT WE WELCOME
THAT.
CHARITABLE ORGANIZATIONS AND
COMMUNITY ORGANIZATIONS FROM
HELPING OUT MEMBERS OUR
COMMUNITY OF IT THAT'S A GREAT
THING AND WE ENCOURAGE THAT AND
WE ACTUALLY PARTICIPATE AND
DONATE THE GROUPS THAT DO THAT
BUT THERE AREN'T A FOR PROFIT
THIRTY SIX PERCENT.
TITLE LENDERS
THAT ARE OUT THERE ONE YORK HAS
A A LIMIT OF SIXTY PERCENT ON
UNLICENSED AND TWENTY FIVE
PERCENT ON LICENSE
AND YET THERE ARE. TITLE LOANS
AND THOSE THINGS GOING ON THEIR
SIDE THAT'S WHY I'M JUST TRYING
TO FIGURE OUT. WHAT?
HOW THAT WORKS IN IN STATES WITH
CAPS SO THERE ARE TRADITIONAL
INSTALLMENT LENDERS INCLUDING
CALIFORNIA WHO DO BUSINESS
ACROSS THE COUNTRY? ON A STATE
LICENSE LEVEL WHERE NONBANK
LENDERS.
SO INTEREST RATES ON THE LOANS
MAY BE. AT THAT WHATEVER THE
STATE CABINS ARE CERTAINLY WOULD
BE FROM A LEGAL PERSPECTIVE
FRANK BUT THEY MAY ALSO SELL
OTHER PRODUCTS IN THOSE STORES
THAT. AREN'T PART OF THE FINANCE
CHARGE FOR PURPOSES OF TEALA AND
THEREFORE ARE NOT PART OF THE A
PR OR THE INTEREST RATE CAP. TO
ANCILLARY CREDIT PRODUCTS
INSURANCE PRODUCTS ANY NUMBER OF
OTHER PRODUCTS THAT MIGHT BE
APPLICABLE.
.
FOR THAT PARTICULAR LENDER AND
THAT WAS NOTHING WOULD HAVE
SIMILAR SO THAT THAT NO ONE SOON
IT WILL FOR JUST THAT AMOUNT
THEIR OTHER AMOUNTS THAT ARE
COMING IN.
FRIDAY MAY BE UP RIGHT
DIVERSIFIED REVENUE STREAMS.
FOR THAT COMPANY.
WITH THAT MADAM CHAIR WOULD YOU
LIKE TO CLOSE THINK YOU AYE IT
YOU KNOW I I WANT TO SAY THAT AT
THEIR TWENTY FIVE STATES PLUS
THE DISTRICT OF COLUMBIA THAT
DON'T HAVE CAR TITLE.
AND SO THAT'S WHAT WE'RE
TALKING ABOUT THE CALIFORNIA
WOULD BE JOINING THESE TWENTY
FIVE CENT STATES PLUS THE
DISTRICT OF COLUMBIA I ALSO WANT
HIM BUT JUST CLARIFY SOMETHING
THAT'S BEEN BROUGHT UP A LOT
IT'S ABOUT DATA DATA DATA. ON
OUR DB ó REPORT THAT CAME OUT
LAST YEAR I TALKED ABOUT THE
TWENTY THOUSAND CARS THAT WERE
REPOSSESS AT A HUNDRED AND EAT.
I THOUSAND ASK ORIGINATION.
TITLES AND I THINK IT'S
IMPORTANT TO CLARIFY THAT THIS
INFORMATION IS GATHERED. BY
INFORMATION THAT THE COMPANY'S
PRESENT AND SIGN OFF ON THIS IS
NOT ABSTRACT DATA. SO THIS
INFORMATION THAT GOES TO THE DB
ó IS INFORMATION THAT HAS BEEN.
YOU KNOW SENT AS FACTUAL
INFORMATION EVERY COMPANY IN
CALIFORNIA SIGNS OFF TO IT SO I
THINK THAT WHILE THERE IS NO
DOUBT THAT MORE INFORMATION IS
HELPFUL I DON'T WANT. TO AYE YOU
TO TO KIND OF SCRUTINIZE THE THE
INTEGRITY OF THAT DATA WHAT WE
DO HAVE DOES TELL US SOMETHING
AND IT'S SOMETHINGTHAT HELPS US
MOVE IN A DIRECTION.
EVERY SINGLE ONE OF US HAS A
CONSTITUENT OR TWO OR THREE OR
MORE IN OUR DISTRICT THAT
REPRESENTS THESE TWENTY THOUSAND
PEOPLE WHO HAD THEIR CARDS
REPOSSESSED.
THAT CAR IS A MEAN TO GET TO AND
FROM WORK THAT CAR IS A MEANS TO
GET TO THEIR SCHOOLS IT'S I MEAN
TO GET ACCESS TO HEALTH CARE
THIS IS REAL. BUT IMPACT OF
LOSING THAT CAR IS FAR BEYOND
JUST NOT BEING ABLE TO MAKE A
PAYMENT IT HAS IMPACTS FOR EVERY
SINGLE ONE OF US IN OUR DISTRICT
BECAUSE WE REPRESENT PEOPLE WHO
HAVE LOST THEIR CAR. AND SO WHAT
WE'RE TRYING TO DO IS TO ENSURE
THAT WE'VE LEARNED FROM SOME OF
THE LESSONS THAT HAVE HAPPENED
IN OUR COUNTRY IN OUR STATE
PARTICULARLY AROUND BLENDING WE
WANT TO MAKE SURE THAT LENDING
DECISIONS. ARE BASED ON THE
CONSUMER CONSUMERS ABILITY TO
REPAY THE LOAN AND NOT THE VALUE
OF THE ASSET.
THAT IS REALLY IMPORTANT.
THAT'S HOW SO MANY PEOPLE LOST
HOMES.
AND SO WITH THAT I RESPECTFULLY
ASK FOR AN AYE VOTE.
AB TWENTY NINE FIFTY THREE DO
PASSED COMMITTEE ON
APPROPRIATIONS. LAMONT BY LIMON
AYE. CHEN.
CHEN NOT LOADING.
ACOSTA.
BURKE.
CALDERON.
CALDERON I.
CERVANTES.
CHOI NONVOTING.
CHOI NOT VOTING.
GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE GRAYSON.
GRAYSON AYE.
STONE.
STONE AYE WEBER.
WEBER I.
THANK YOU.
AND APPARENTLY.
LONG.
A GREAT.
THANKS FOR COMING TO OUR STORE
.
YEAH
THERE.
SO WE WILL START.
SOBRE KEEPING AND THE ROLE OPEN
JUST FOR THE REMAINDER RUNS AND
WE ARE STARTING WITH AB TWENTY
FIVE HUNDRED.
AB TWENTY FIVE HUNDRED. BURKE
NOT VOTING.
I RATES THEN MOVING ON.
CHIU A.
THE SEVENTEEN EIGHTY ONE.
AB SEVENTEEN EIGHTY ONE BURKE.
BURKE I.
MOVING ON TO AB TWENTY NINE
FIFTY THREE.
AB TWENTY NINE FIFTY THREE
BURKE.
BURKE NOT VOTING.
AND THEN WE HAVE THE CONSENT
AGENDA.
BURKE.
BURKE I.
WE'RE WAITING JUST ANOTHER
MINUTES A THING. FOR SO
.
SO AB TWENTY NINE FIFTY THREE.
AB TWENTY NINE FIFTY THREE.
CERVANTES.
CERVANTES AYE.
ALRIGHT WITH THAT WE WILL.
ADJOURN ARE HEARING
BUT