GOOD AFTERNOON EVERYONE.
WE ARE GOING TO THAT.
STARTS AT THE COMMITTEE HAD AS A
SUBCOMMITTEE AS OTHER MEMBERS AT
COME IN I KNOW THERE'S A LOT OF
COMMITTEES HAPPENING AT THIS
MOMENT. AND SO WHEN WE HAVE
OTHER MEMBERS COME AND WE WILL
ADD.
CALL FOR A QUORUM. AYE I DO SEE.
THAT WE HAVE THE.
.
MISTER JONES SAWYER HERE AT TO
PRESENT A BILL.
FOR S..
THIS IS AB TWENTY EIGHT TWENTY
FIVE
I'M ALL THAT IS A CIVIL RIGHTS
ORGANIZATION WE HAVE OVER FIFTY
YEARS OF. WORKING IN THE AREAS
OF POLICY LITIGATION AND
COMMUNITY EDUCATION AND WORKING
ON ISSUES THAT AFFECT LATINOS
AND THEIR CIVIL RIGHTS AND. WE
BELIEVE THAT THIS IS A VERY
STRAIGHTFORWARD BELL AS ASSEMBLY
MEMBER MENTIONED IT IS JUST
CLOSING AN EXISTING LOOPHOLE WE
DEFINITELY BELIEVE THAT THESE
TYPES OF DADS ARE DEBTS THAT
SHOULD BE PROTECTED UNDER THE
ROSENTHAL. FOR DATA COLLECTION
ACT AND I'M JUST TO ENSURE THAT
THIS BILL PROVIDES. AS STATED IS
CRITICAL PROTECTIONS TO EXPOSE
COMMUNITIES SUCH AS LOW INCOME%
COMMUNITIES COMMITTEES OF COLOR.
ON IMMIGRANT COMMUNITIES AND THE
ELDERLY BY EXTENDING THESE
PROTECTIONS ON WITHOUT REALLY
CHANGING THE COLLECTION
PRACTICES FOR THE STATS ARISING
FROM CONSUMER TRENDS ACT OUT
CONSUMER TRANSACTIONS. ON THEIR
FRONT STATED.
THIS MERELY JUST CLOSES A
LOOPHOLE AND WE LOOK FORWARD TO
CONTINUING TO WORK.
WITH THE COMMITTEE AS AS THIS
BILL MOVES FORWARD THINK YOU
ENTER DRIVE YOUR I'VE.
I HATE
ADDITIONAL WITNESSES AND
SUPPORTS.
I ENGRAM ACLU OF CALIFORNIANS
SUPPORT.
SEE NO OTHER WITNESSES AND
SUPPORT ANY WITNESSES IN
OPPOSITION.
YOU'RE WELCOME TO COME UP.
GOOD AFTERNOON AND MEMBERS OF
THE COMMITTEE MY NAME IS DAVID
REID I'M TRACTOR GOVERNMENT
AFFAIRS OF FOR THE RECEIVABLES
MANAGEMENT ASSOCIATION.
OTHER SINGLES MANAGEMENT
CESSATIONS A NONPROFIT TRADE
ASSOCIATION THAT REPRESENTS THE
INTERESTS OF MORE THAN FIVE
HUNDRED BUSINESSES. WITH THOUGHT
WITHIN THE RECEIVABLES
MANAGEMENT INDUSTRY INCLUDING
THE CREDITORS THIRD PARTY
COLLECTION AGENCIES COLLECTION
LAW FIRMS AND DEBT BUYING
COMPANIES.
OTHER RECEIVABLES MANAGEMENT
ASSOCIATION RESPECTFULLY OPPOSES
ASSEMBLY BILL TWENTY EIGHT
TWENTY FIVE BY ASSEMBLY MEMBER
JOINS JONES SAWYER AS THE BILL
AS CURRENTLY DRAFTED BUT I WANT
TO MAKE CLEAR THAT. WE ARE
WONDER PERCENT SUPPORT THE
CONCEPT THAT'S BEEN PUT FORWARD
HERE. OF ITS.
AND WITH THAT WITH SOME WHAT I
WOULD CALL MODEST AMENDMENTS.
THAT WILL NOT MAKE A
SUBSTANTIVE IMPACT ON THE BILL
WOULD OF BE PROUD TO ISSUE A
MEMO SUPPORT ON THE BILL. OF THE
BILL AS DRAFTED.
WOULD HAVE MEANT TO SEPARATE
ACTS THOUGH ROSENTHAL FAIR DEBT
PAPA COLLECTION PRACTICES ACT
AND THE OF THE FAIR DEBT BUYING
PRACTICES ACT.
BY ADDING NON CONSENSUAL
OBLIGATIONS TO PAY.
TO THE SCOPE OF BOTH ACTS.
ARMY SUPPORTS THE DIVISION OF
NON CONSENSUAL OBLIGATIONS THE
PAY TO THE ROSENTHAL ACT.
BUT OPPOSES ITS ADDITION TO THE
FAIR DEBT BUYING PRACTICES ACT
OF THE REASONS WHY ARMY OPPOSES
ITS ADDITION TO THE FED UP BY
AND PRACTICES ACT ARE ARE UP
FORTY FOUR POINTS. THE FIRST
THAT.
THE FED AT PRATT ART COLLECTION
THE FAIR DEBT BUYING PRACTICES
ACT IS LARGELY BASED ON CREDIT
CARD DEBT AND THE TERMS TO USE
THROUGHOUT THE ACT. ARE FOCUSED
ON THE UNIQUE CHARACTERISTIC
CHARACTERISTICS OF THIS ASSET
CLASS MOST OF THE PROVISIONS OF
THE FAIR DEBT BY AND PRACTICES
ACT IS CONDITIONED ON THE THE
CONCEPT OF CHARGE OFF.
WHICH IS A DEFINED TERM IN
FEDERAL LAW IN THE FEDERAL
BANKING A BANKING CODES.
CHARGE OFF IS A TERM FOR TWENTY
TIED TO A WITH PRODUCTS AND
SERVICES USED BY FINANCIAL
INSTITUTIONS. ARMY IS UNAWARE OF
ANY INSTANCE WHERE NON
CONSENSUAL OBLIGATIONS TO PAY
ARE ASSOCIATED WITH CHARGE OFF.
BY ADDING THIS TERM TWO SECTIONS
OF LAW THAT ARE CONDITIONED ON
CHARGE OFF WILL LIKELY MAKE
THESE LEGAL OBLIGATIONS ON
COLLECTIBLE.
ARE THE SECOND POINT IS THAT THE
FAIR DEBT BUYING PRACTICES THAT
REQUIRES A COPY OF THE
CONTRACTOR OTHER DOCUMENT
EVIDENCING THE DEBTORS
AGREEMENT.
TO THE DEBT WHICH DOES NOT EXIST
WITH NON CONSENSUAL OBLIGATIONS
TO PAY AS IT RELATES TO LANES
AND PENALTIES DESCRIBED IN THE
BILL'S DEFINITION. OF THE OF
THAT TERM IT WOULD BE A LEGAL
IMPOSSIBILITY FOR BUSINESSES TO
COMPLY WITH THIS PROVISION OF
LAW AS IT'S DRAFTED.
THIRD POINT IS THAT THE FAIR
DEBT BUYING PRACTICES ACT
REQUIRES THE CONSUMER NOTICED TO
BE PROVIDE TO CONSUMERS OF
CREDIT CARD DEBT.
BY ADDING NON CONSENSUAL
OBLIGATIONS TO PAY OUT TO THE
REQUIRED NOTICE. WOULD ONLY
SERVE TO CONFUSE THE VAST
MAJORITY OF INDIVIDUALS WHO WILL
RECEIVE THE NOTICE ON CREDIT
CARD DEBT.
AND THEREBY OPEN UP.
THESE BUSINESSES TO LIABILITY
UNDER BOTH THE ROSENTHAL ACT AND
THE FEDERAL FAIR DEBT COLLECTION
PRACTICES ACT.
AND THEN FINALLY.
ADDING NON CONSENSUAL
OBLIGATIONS TO PAY TO THE FED UP
BY PRACTICES SERVES NO PURPOSE
BECAUSE EVERY BUSINESS THAT IS
SUBJECT TO THE FAIR DEBT BUYING
PRACTICES ACT. IS ALSO SUBJECT
TO THE ROSENTHAL ACT.
L..
SO THE MERE ACT OF THE MERE FACT
OF THE MANY IN THE ROSE AND FELL
ACT WHICH ARMY SPORTS WOULD
AUTOMATICALLY BRING IN ALL OF
THOSE BUSINESSES THAT I ALSO
HAVE TO COMPLY WITH THE FAIR
DEBT BUYING PRACTICES ACT. BUT
WITHOUT TRYING TO.
AMEND THE PROVISIONS OF THE FED
UP BY PRINT OR A PRACTICES ACT
WHICHAGAIN ARE GEARED TOWARDS
FINANCIAL. OF BECAUSE OF
PRODUCTS AND SERVICES OF ARMY
WOULD OF LOVED TO WORK WITH THE
SPONSOR.
AND THE AUTHOR AND THE
COMMITTEE.
AS THIS BILL MOVES FORWARD WE
DON'T INTEND TO OR WANT TO BE AN
IMPEDIMENT TO THIS BILL'S
PASSAGE AGAIN WE SUPPORT THE
CONCEPT. OF WE JUST WANT TO MAKE
SURE WE GET IT RIGHT ALSO
DOESN'T CREATE ANY UNINTENDED
CONSEQUENCES IT THANK YOU.
THANK YOU. ANY OTHER WITNESSES
OPPOSITION.
MEMBERS ANY COMMENTS OR
QUESTIONS.
HAVE AUTHORITY BY.
THANK YOU ASSEMBLY MEMBER BY OUR
SEWER.
SUPPORT YOUR ORIGINAL ACT
CONCEPT OF BEHIND DISPIRITO LA.
BUT BY HAS SOME.
.
DEFINITIONAL LA.
NO QUESTIONS SO HERE NON
CONSENSUAL.
DATA. NOT INCLUDE SECURE
RESIDENTIAL RAN TO WALK CREDIT
CARD.
OF THOSE ARE THE ONES SOME WHEN
YOU SIGN UP BAR YOU HAVE AGREED
TO.
THAT THE YOU SHALL PAY.
ARE YOUR MONTHLY.
ABOUT RENT A WALK CREDIT CARD.
WELL IT IS IN THAT THAT. YOU
KNOW.
THE YOU YO CONSENT WITHOUT POWER
REQUIREMENT ORIGINALLY.
IF THE SO ONE SIDED THAT THAT'S
A NON CONSENSUAL.
SO UNDER KNOW HOW YOU CAN.
.
COMBINED THE MORE TOGETHER.
SO YOU THINK YOU'VE.
.
I CHOI BABA RECEIVED THEIR
OBJECTIONS ON ON FRIDAY NIGHT.
AND I AND I AGREE WITH ARE IN
MAY THAT WE'LL. AS WE IF IF WE
GET OUT OF THIS COMMITTEE AS WE
GO THROUGH JUDICIARY COMMITTEE.
WHICH I THINK WILL REALLY FOCUS
IN ON THAT THAT THE DEFINITION
OF WHAT. LIKE A LASER THAT WILL
BE ABLE TO WORK OUT SOMETHING
THAT WOULD NOW BE AMENABLE TO
OUR IN MAY. BUT WILL NOT TOUCH A
UTILITY WRITTEN INTACT
BUT WHAT WE'RE TRYING TO DO IN
IN THIS BILL. ARM UP I HAVE
SEVERAL IDEAS THAT I DON'T THINK
WE SHOULD.
HASHEM OUT RIGHT NOW.
BUT.
I THINK WE CAN COME UP WITH
SOME COMPROMISE.
OKAY ARE A I WOULD TOTALLY AGREE
THAT THERE ARE THERE HAS TO BE
SOME FAILURE WAY OF COLLECTING
THAT THAT'S.
A LINE OF SCHOOL REAL SO WAY OF
UP COLLECTING DEBTS SUCH AS
UNFAIR. A BECAUSE OF YOU US
STATED THE HAIR. AROUND IT IT UP
PAYING THAT THAT THE. WHAT THE
PROVIDING?
THE FOOL DOT FROM THE TABLE
AMEND.
WHICH WHICH IT HAS A VERY VERY
ESSENTIAL AND. NECESSARY
NECESSARY THERE HAS TO BE SOME
WAY SO WE CAN HELP THE MOUTH
ABOUT ON THE OTHER HAND.
IF WE ARE.
OVER REGULATE TELL OR OR OVAL
PROTECT THE CONSUMER SECTOR AND
THE.
ONE INTENDED UP CONSEQUENCES.
UP. MAY BE IT A BIT HARDER.
TO OUR RENTAL PLACE.
I HAD TO LEAVE OUR.
BECAUSE OF THEY WERE THEY WERE
TO A FATHER AND SCRUTINIZES
ASIAN WHETHER THE PERSON. WOULD
HAVE A HIGHER.
.
CREDIT RATING WHAT ABILITY TO TO
PAY THE RENT.
ETCETERA ETCETERA SO EVENTUALLY
THEY MAY BECOME. OF THE VICTIM
LATER ALL.
SO ARE.
IT IS SO WELL INTENDED HOWEVER
THERE MAY BE SOME. UNINTENDED
CONSEQUENCES TO WHEN.
A.
THE SOMEBODY HAS TO PAY. IT PAID
FOR.
L. ONE SITE. IN.
THE RENTER DOES NOT.
PAY THE PROJECTED INCOME.
AND AND.
DOT LAW PROHIBITS.
FAVORITES VENTURED COLLECTING
THE DATA AND THEN ALSO WOULD
HAVE WHAT IS SO.
VIA.
A STATUE OF LIMITATIONS AND DAN
OVERALL PRICES LATER ON THEY
HAVE TO CHARGE BACK MORE TO
THAT.
SO WHAT ARE WHETHER YOU HAVE
THOUGHT ABOUT THE ONE THAT
THERE.
I.
UNINTENDED NEGATIVE CONSEQUENCES
AS WELL.
SO AGAIN DOCTOR CHOI I HEAR ALL
YOUR CONCERNS AND NOT WILL WORK
WITH THE THE OPPONENTS OF THE
BILL TO ENSURE NOT ONLY THEM BUT
I I BELIEVE. ON THE SOME OTHER
INDIVIDUALS THAT I'VE TALKED TO
ABOUT. ON UNINTENDED
CONSEQUENCES THAT WE DON'T.
.
WE DON'T TRIGGER THAT THIS IS
REALLY SHOULD BE NARROWLY FOCUS.
TWO UNSCRUPULOUS ARM LENDERS.
AND. I WOULD NECESSARILY PUT OUR
INMATE IN THAT CATEGORY WHO WILL
DO EVERYTHING WE CAN NOT THE
PREDOMINANT CATEGORY.
THANK YOU.
ANY OTHER QUESTIONS OR COMMENTS
FROM MEMBERS.
WE DON'T YET HAVE QUORUM WE WERE
SO CLOSE TO HAVING QUORUM. AND
THE AND SO WHEN WE DO AND WE
WILL.
TAKE A VOTE ON THE BILL.
THANK YOU THANK YOU THANK YOU
COMMITTEE THANK YOU FOR YOUR
QUESTION.
NEXT WE HAVE A ASSEMBLY MEMBER
QUIRK.
WITH AB SEVENTEEN FORTY TWO.
CHAIR OF THE MONNIN MEMBERS.
I WANT TO THANK THE COMMITTEE
STAFF WORKING CLOSELY WITH MY
STAFF ON THIS BILL THANK YOU
VERY MUCH FOR ALL OF YOUR HELP.
AB A SEVENTEEN FORTY TWO MAKES
IT EASIER FOR CALIFORNIANS TO
FREEZE THEIR CREDIT HISTORY.
TO PROTECT THEMSELVES FROM THEFT
AND FRAUD.
EVERY YOUR PERSONAL DATA IS
STOLEN FROM MILLIONS OF
AMERICANS IN DATA BREACHES IT'S
HAPPENED TO ME SEVERAL TIMES.
LAST YEAR'S EQUIFAX ATTACK WAS.
ON ONE OF THE THREE CONSUMER
CREDIT REPORTING AGENCIES.
IT PUT OVER A HUNDRED AND FORTY
THREE AM.
MILLION AMERICANS INCLUDING ME.
AT RISK FOR IDENTITY THEFT.
CALIFORNIA'S CAN PROTECT
THEMSELVES WITH CREDIT FREEZES.
IT CAN PREVENT CRIMINAL FROM
OPENED UP FRAUDULENT CREDIT
LINES.
THE FREEZE PROCESS HOWEVER IS
COMPLICATED AN ARCANE. AB
SEVENTEEN FORTY TWO WOULD
PROTECT CALIFORNIANS BY ALLOWING
THEM TO PLACE ONE CALL. I MAKE
ONE A LOT ELECTRONIC REQUEST
DEFEAT FREEZE THEIR CREDIT AND
ALL CREDIT REPORTING AGENCY
SOMETHING.
I'VE DONE MYSELF.
UP THE SAME SIMPLE PROCESS WOULD
APPLY TO TEMPORARY OR PERMANENT
UNFREEZE.
WITH ME TODAY.
I THOUGHT.
UP THERE I.
HA WITH ME TODAY IS TIFFANY
MATTHEWS ON BEHALF OF THE
CALIFORNIA.
DISTRICT ATTORNEYS ASSOCIATION.
GOOD AFTERNOON CHAIRMAN MEMBERS
TIFFANY MATTHEW SOME HALF THE
CALIFORNIA DISTRICT ATTORNEYS
ASSOCIATION AND WE ARE IN
SUPPORT OF AB SEVENTEEN FORTY
TWO BY ASSEMBLYMEMBER QUIRK.
DATA BREACHES ARE BECOMING A
COMMON OCCURRENCE
TECHNOLOGY HAS MADE IT EASIER
FOR HACKERS TO ACCESS PERSONAL
INFORMATION AND STILL THE
IDENTITIES OF CONSUMERS AROUND
THE WORLD.
IDENTITY THEFT IS A MAJOR
PROBLEM IN THIS BILL WOULD BE
HELPFUL TO A CONSUMER FACING
POTENTIAL IDENTITY THEFT BY
MAKING IT EASIER FOR THEM TO
FREEZE THEIR CREDIT AND PREVENT
FRAUDULENT CREDIT LINES. FROM
OPENING
WE URGE AYE VOTE.
I THINK YOU ANY ADDITIONAL
WITNESSES IN SUPPORT.
SUSAN MARTIN WITH CONSUMERS
UNION WHEELS THINKS IS VERY
COMMON SENSE YOU CAN ALREADY DO.
ONE ONE REQUEST ALL THREE
BUREAUS FOR NINETY DEFRAUDED SO
DOING IT FOR A SECURITY FREEZE
MAKES ALL THE SENSE IN THE WORLD
AND WE SHOULD ALL BE PROTECTING
OURSELVES IN LIGHT OF THE
EQUIFAX DATA BREACH. VERY MUCH
APPRECIATE YOUR LEADERSHIP ON
THIS.
SUMMIT MEMBER AND RICKY AND
RESPECTIVELY ASPIRIN AYE BUT.
YOU.
ANY WITNESSES IN OPPOSITION.
I MADAM CHAIR MEMBERS OF
COMMITTEE RAINY POLLOCK ON
BEHALF OF THE CONSUMER GET
INDUSTRY ASSOCIATION WHICH
REPRESENTS OVER ONE HUNDRED
CONSUMER REPORTING AGENCIES
THROUGHOUT THE UNITED STATES
INCLUDING THE NATIONAL ONES
EXPERIAN EQUIFAX AND TRANSUNION.
WE SUPPORT PROVISIONS OF THIS
BILL THAT CONSUMERS SHOULD BE
ALLOWED TO PLACE A SECURITY
FREEZE ELECTRONICALLY. WE ALSO
SUPPORT ELIMINATION OF ANY FEES
ASSOCIATED WITH THOSE FREEZES.
WE ALSO SUPPORT THE CONCEPT OF
THE FREEZE THAT SHOULD BE LIFTED
WITHIN FIFTEEN MINUTES OF THAT
WE BELIEVE THE PROVISION SHOULD
BE INCLUDED UP FOR ACTS OF GOD
SOMETIMES ARE COULD BE A CRISIS
WHERE DATA CENTER COULD BE
CLOSED DOWN. AND THAT
INFORMATION CANNOT BE ACCEPTED
WITH THAT FIFTEEN MINUTES.
HOWEVER WE BELIEVE THAT IN PLACE
IN OF THE INITIAL FREEZE WE'D
LIKE TO HAVE A MAXIMUM THREE
DAYS TO PLACE INITIAL FOR HOUSE.
THIS IS TO ENSURE THAT WE CAN
AUTHENTICATE THE PERSON AN
INDIVIDUAL WHEN THEY SUPPLIED
THE INFORMATION TO US.
THERE ARE MANY TIMES THAT WE
RECEIVE INFORMATION WHERE WE MAY
NOT HAVE COMPLETE INFORMATION WE
MAY HAVE A PARTIAL TELEPHONE
NUMBER PARTIAL NAME. PARTIAL
ADDRESS AND UNDER THE PROVISIONS
OF THIS LAW WE WOULD STILL HAVE
TO PLACE THAT INITIAL FREEZE.
AND SO WE'RE VERY CONCERNED THAT
COULD LEAD TO SOME FRAUDULENT
CONTACT.
ADDITIONALLY WE ALSO HAVE
OBJECTION TO TO THE PARTS OF THE
BILL ABOUT REPORTING THE
INFORMATION TOGETHER CREDIT
BUREAUS.
RIGHT NOW THERE ARE NO SYSTEM
EXISTS FOR SHARING THAT
INFORMATION AMONG ALL THREE
CREDIT BUREAUS.
EACH OF THE NATIONAL CREDIT
REPORTING AGENCIES ARE
INDEPENDENT IN THE.
INTERNATIONAL BUSINESSES WHO
HAVE DIVERSE DATABASE PLATFORMS.
THE SYSTEMS ARE PARTICULARLY
COMPLEX WHEN INTEGRATED TAKES
PLACE ACROSS CREDIT REPORTING
AGENCIES BECAUSE EACH AGENCIES
HAS ITS OWN STANDARDS REGARDING
DATA COLLECTION AND DESIGN.
I BELIEVE WE HAVE SEEN OVER TIME
THE COMPLEXITY OF HAVING
CALIFORNIA STATE AGENCIES SHARE
INFORMATION WHICH HAS BEEN
DIFFICULT TO ACCOMPLISH.
PASSABLY THE PAST THE SENATE AND
ASSEMBLY AT HAVE STRUGGLED TO
TRY TO BUILD A UNIFORM SYSTEM
AMONG BOTH HOUSES.
ALSO AND JUST AS IMPORTANT EACH
CREDIT REPORTING AGENCY WILL
WANT TO VERIFY THE CONSUMERS
INFORMATION ON THEIR. OWN
DATABASES
THEY DON'T HAVE TO RELY AND THE
OTHER CREDIT BUREAUS.
AND ADDITIONALLY.
UNDER THE LAW WE HAVE TO SEND A
PASSWORD OR A PIN NUMBER TO EACH
OF THE CONSUMER TO PLACE A
FREEZE.
SO EVEN IF A FREEZE THIS PLACE
FOR EXAMPLE WITH EXPERIENCE WANT
THAT INFORMATION IF WAS SENT
OVER TRAINED UNION WE WOULD HAVE
TO CONTACT THE CONSUMER. AND
GIVE THEM A SPECIAL PIN NUMBER
AND A PASSWORD IT WOULD HAVE TO
VERIFY THEIR INFORMATION AGAIN.
SO THAT'S WHERE WE SEE SOME
TROUBLING PROVISIONS HERE.
ALSO AND AND LASTLY WHAT THIS
PROVISION ALSO REACHED TO IS
THAT YOU COULD GO FOR EXAMPLE
HERE AT A CAR DEALERSHIP AND THE
CAR DEALERSHIP SAYS WELL WE USE
EXPERIENCE FOR CREDIT REPORT.
UNDER THIS LAW YOU COULD CALL
TRAINED UNION AND REQUIRE THEM
TO CALL EXPERIENCE TO HAVE THEM
WITH THAT.
SPECIFIC FREEZE FOR THAT
PARTICULAR CASE
FOR THESE REASONS WE ARE OPPOSED
TO LESS AMENDED THANK YOU.
THANK YOU ANY ADDITIONAL
WITNESSES IN OPPOSITION.
MEMBERS ANY QUESTIONS OR
COMMENTS.
THAT'S ON THE RECORD THINK YOU.
MADAM CHAIR
BOB.
YOU KNOW I HAVE I I LIKE.
WELL A LOT MORE PIECES OF THIS
BILL LOT OF PROVISIONS I THINK
ARE REALLY EFFECTIVE AND HAVING
WORKED IN THIS INDUSTRY FOR.
YOU KNOW MANY YEARS I CAN TELL
YOU THAT.
.
THAT I CAN SEE SOME ISSUES WITH
SOME OF IT ONE OF THE THINGS
THAT REALLY STUCK STRUCK ME AND
IN ADDITION TO WHAT THE
OPPOSITION JUST STATED
PARTICULAR ABOUT THE REPORTING.
THE CROSS REPORTING I THINK
THAT'S A BUT SUDDENLY HAVE TO
WORK OUT.
A LITTLE MORE BUT ALSO I THINK
WE NEED TO BETTER DEFINE THE
RECEIVING OF THE REQUEST
ELECTRONICALLY ESOS THAT WHEN IT
HITS THE IN BOXES THAT.
YOU KNOW EMAIL THIS THAT WHEN
IT'S OPEN THIS THAT AFTER A
BUTTON IS REPLIED ACKNOWLEDGE
THEIR YOU KNOW HOW DO WE. HOW DO
WE DEFINE THAT I THINK THAT CAN
REALLY MAKE A SIGNIFICANT
DIFFERENCE?
YOU KNOW ESPECIALLY WITH YOU
KNOW WHAT CAN HAPPEN WITH THEM
PENALTIES ETCETERA SO I THINK
THAT'S OF A SIGNIFICANT CONCERN
I HAVE.
IF YOU'D LIKE TO ADDRESS THAT
IN THE IN THE FREEZING ISSUE
WITH THE OTHER.
BETWEEN THE AGENCIES THAT
YOU'RE BECAUSE AT THIS POINT
I'M.
OKAY SO YOU'RE RIGHT WE HAVE TO
COME UP WITH A BETTER DEFINITION
THANK YOU FOR BRINGING THAT OUT.
AND I'M CERTAINLY WILLING TO
TALK TO THE OTHER AGENCIES I
MEAN IF A CONSUMER.
CAN LEAD NAY AGENCY KNOW THAT
THEY WANT TO FREEZE.
ARM AND WE CAN TALK ABOUT
EXACTLY.
THE DETAILS OF THAT WITHA.
WITH THE CREDIT BUREAUS OTHER
SHOULD BE AWAY TO GET THAT SAME
INFORMATION.
OF BY EMAIL OR.
.
OTHER.
ELECTRONIC.
COMMUNICATION.
BUT IT CLEARLY HAVE GOT TO TALK
WITH THE.
.
AGENCIES HERE IN DETERMINE.
.
THE DETAILS OF HOW WE GET THIS
ALL DONE AND I'M CERTAINLY.
VERY MUCH IN SUPPORT OF MAKING
SURE THAT WE GET THIS DONE
PROPERLY.
AND THAT TAKE INTO ACCOUNT ANY.
DIFFICULTIES AND GO FROM THERE
SO.
I'D BE GLAD TO SIT DOWN WITH
YOU OR. ANYONE ELSE FROM THE
INDUSTRY BE WHERE I AM AND I T.
GUY SARAH.
BOB WE CAN TALK ABOUT IT WE CAN
TALK DATA.
THANK YOU FOR ALL THANK YOU I'VE
FOR FOR THAT ANSWER WELL IT AT
THIS PARTICULAR JUNCTURE. I
DON'T THINK I'D BE ABLE TO
SUPPORT THE BILL IN THIS
COMMITTEE BUT I CERTAINLY
RESERVE THE RIGHT AS IT GOES
THROUGH. ANY OTHER PROCESSES OR
ANY MEMBER OF MY COME THROUGH AB
MIGHT WANT TO JOIN HIS CO AUTHOR
BUT I THINK IT THAT WITH
SHAREABLE OF ISSUES I THINK I
JUST CAN'T.
I KILL IT THE WRONG THING
ASSEMBLY MEMBER.
ANY OTHER QUESTIONS OR COMMENTS
FOR TRADE.
YEAH I. ONE HOUR SO.
AT MY FEELINGS ABOUT THIS A
FIFTEEN MINUTES I IS SITE AND
ELECTRONIC. AGE I CAN UNDERSTAND
THAT HOWEVER LISTENING TO.
OPPOSING SIDE THE. NOW MAYBE I
YOU CAN TALK ABOUT.
DE IT IT IT IN ALL.
POSSIBILITIES CELL OR THE SOME
PROBLEMS AND THE COME UP WITH
THIS SOME. NOT COMPROMISED
VERSION.
LEKA IN BANKING AYE I SEE. WHEN
I TRY TO TRANSFORM MY OWN MONEY
WITHIN A BATON GOT FOR MY
SAVINGS TO CHECKING WHATEVER. IT
DOESN'T TRANSFER A SAYS
DEPENDING. MEANING THAT THAT
YEAH WE RECOGNIZE YOUR REQUEST
HOWEVER IS THE PROCESS THAT
WOULD TAKE PLACE IN LIKE A BATCH
PROCESSING. IF THE MIDNIGHT
SUBJECT THAT THE SHOW MAYBE SOME
OF IT WE NEED YOU MEAN THERE
WILL WILL WILL TALK WITH THE
AGENCIES I WILL SAY THIS IF YOU
GO AND BUY A CAR TO GET A
RESPONSE PRETTY QUICKLY.
SO.
WELSH WILL HAVE TO DISCUSS THE
TALES.
THEN I'M GLAD TO MAKE SURE WE
HAVE A BILL THAT CAN BE X..
YEAH I DO ALSO REALIZE SO YOU
YOU YOU OR IF THAT'S A POINT OF
VIEW AS HAS SOMETIMES A VERY
URGENT TELL YOU YOU NEED DOT
THAT ACT YOU KNOW YOU CAN FREEZE
IT THOUGH ON FOR YOU SEE AT THE
LADDER AWAY SO THAT YOU CAN.
YOU A TECH ACTION ON THE ON THE
PARTICULAR TRANSACTION THAT
THOUGH YOU ARE IN SO I I THINK
OF THAT YEAH. I CAN UNDERSTAND
BOTH SIDES SUPPORT BY TALKING.
WHO CAN COME UP WITH A BETTER
COMPROMISED VERSION YEAH WELL
JUST BRING YOUR EXPERTS?
WE'LL TALK ABOUT IT.
AND IT OTHER ADDITIONAL COMMENTS
QUESTIONS.
THAT WE DO HAVE QUITE ADEPT VERY
SOMBER GRAYSON.
OUR GOOD.
THAT WE DO HAVE QUORUM SO I WANT
TO ASK
.
LIMON.
GEN.
ACOSTA HERE.
BERMAN.
BURKE.
CALDERON.
CHOI HERE.
GONZALEZ FLETCHER.
GRAYSON.
STONE.
WEBER.
WE HAVE QUORUM AND AND NOW IF.
DO WE NEED A MOTION.
WE NEED A MOTION FOR.
I HAVE A MOTION AND A SECOND.
ALRIGHT WILL THIS AT MOTION DOES
HAVE A DO PASS AS AMENDED TO. A.
A PURPOSE.
STEVE.
NO.
PRIVACY AND CONSUMER PROTECTION
THAT'S WORTH GOING NEXT.
ALRIGHT SO WITH THAT WILL CALL
THE ROLL.
THE MOTION IS DO PASS TO
COMMITTEE ON PRIVACY AND
CONSUMER PROTECTION.
LIMON.
LIMON I.
CHEN.
CHEN NOT VOTING.
ACOSTA.
NO.
ACOSTA NO.
BERMAN.
BERMAN I BURKE.
CALDERON.
CHOI AYE.
GONZALEZ FLETCHER.
GRAYSON.
GRAYSON AYE.
STONE.
STONE I.
WEBER.
RIGHT.
WE HAVE FIVE VOTES AND AND THE
BILL IS ON CALL.
THANK YOU WE ALSO CAN TAKE UP IF
WE HAVE A MOTION AND A FOR AB
TWENTY TWENTY FIVE JONES SAWYER.
AND THE SECOND.
ASSEMBLYMEMBER ACOSTA AYE HAS
MOVE THE BILLS WE HAVE A SECOND.
SECONDS.
ASSEMBLYMEMBER CHEN.
UP THAT THE BILL DOES HAVE A
MOTION I'D DO PASS AS AMENDED TO
COMMITTEE ON JUDICIARY.
THE BE TWENTY TWENTY FIVE TO
PASS AS AMENDED TO COMMITTEE ON
JUDICIARY. LAMONT.
LEóN I CHAN.
CHEN AYE ACOSTA.
ACOSTA AYE BERMAN.
BURKE.
CALDERON.
CHOI AYE CHOI AYE.
GONZALEZ FLETCHER.
GRAYSON.
GRAYSON AYE.
STONE.
WEBER.
THE BILL HAS FIVE VOTES AND
FAVOR WILL LEAVE THAT OPEN AS
WELL.
RIGHT SO WITH THAT.
I WILL PASS IT ON TO VICE CHAIR
CHEN
.
I THINK MEMBERS AT AB TWENTY
NINE
EIGHTY FOUR AT THE THEME PARK IN
FOR ENFORCEMENT PROVISIONS OF
THE CALIFORNIA FINANCING LOTS
REFLECT THE GROWING CONSUMER
PROTECTION CONCERNS IN THE NON
BANK LENDING MARKET. THE MARKET
FOR CFL LOANS HAS EVOLVED
RAPIDLY OVER THE PAST DECADE IN
TWO THOUSAND SIX CFL LENDERS
ORIGINATED ONLY FIFTY SEVEN.
SMALL DOLLAR LOANS WITH AN
INTEREST RATE GREATER THAN A
HUNDRED PERCENT.
FAST FORWARD TEN YEARS AND IN
TWENTY SIXTEEN ALONE CFL LENDERS
ORIGINATED NEARLY THREE HUNDRED
AND FIFTY THOUSAND SMALL DOLLAR
LOANS WITH TRIPLE DIGIT INTEREST
RATES REPRESENTING AN AGGREGATE
PRINCIPAL AMOUNT OF ONE POINT
ONE BILLION.
THESE RISKY LOANS ARE MARKETED
TO CALIFORNIANS IN FINANCIALLY
VULNERABLE CIRCUMSTANCES AND IT
IS IMPORTANT THAT THE STATE'S
FINANCIAL REGULATOR HAVE THE
APPROPRIATE TOOLS TO ENFORCE THE
CONSUMER PROTECTIONS PROVIDED BY
THE LAW.
THIS BILL WOULD ALLOW THE
DEPARTMENT OF BUSINESS OVERSIGHT
TO ORDER RESTITUTION OFF OR
DAMAGES FOR VIOLATIONS OF THE
CFL.
AND TO MAKE THE CONSUMERS HOLE
WHEN THEY FALL VICTIM TO UNFAIR
OR DECEPTIVE BUSINESS PRACTICES.
THIS BILL WOULD ALSO INCREASE
THE PENALTIES FOR VIOLATING THE
CFL TO A MAXIMUM OF TWENTY FIVE
THOUSAND FOR A GREGOR IT'S
VIOLATIONS BY NEGLIGENCE OR
WILLFUL ACTORS WITH A HISTORY OF
VIOLENT LA LA CONSISTENT WITH
THE CFL PENALTIES AUTHORED BY
THE CALIFORNIA RESIDENTIAL
MORTGAGE MORTGAGE LENDING ACT
AND OTHERS.
AS THE FEDERAL CONSUMER
FINANCIAL PROTECTION RURAL PULLS
BACK IT'S ENFORCEMENT EFFORT THE
LEGISLATURE HAS THE OPPORTUNITY
TO STEP UP AND EQUIP OUR
FINANCIAL REGULATOR WITH THE
TOOLS TO PROTECT CALIFORNIA
CONSUMERS.
THE BILL HAS THE SUPPORT OF THE
DEPARTMENT OF BUSINESS OVERSIGHT
AND A COALITION OF CONSUMER
ADVOCATES WHO ARE HERE TODAY TO
VOICE THEIR SUPPORT.
SUZANNE MARTIN IS HERE TO
TESTIFY IN SUPPORT.
THANK YOU HAD CHAIR MEMBERS
SUZANNE MARTIN DEL WITH
CONSUMERS UNION AYE AND THAT A
COALITION OF CONSUMER ADVOCATES
SUBMITTED A LETTER IN IN STRONG
SUPPORT OF THIS MEASURE.
ESPECIALLY AT A TIME WHEN WE
ARE WATCHING REALLY DEVASTATING
A ROLL BACKS OF CONSUMER
PROTECTIONS AND REGULATORY
OVERSIGHT AT THE FEDERAL LEVEL.
IT ISN'T NOW MORE IMPORTANT THAN
EVER THAT CALIFORNIA SETS UP A
WALL OF CONSUMER PROTECTION
SHALL WE SAY AROUND THE STATE
AND ENSURES THAT OUR PRIMARY
FINANCIAL REGULATOR OF THE
DEPARTMENT OF BUSINESS
OVERSIGHT.
HAS OF THE RANGE OF TOOLS THAT
IT NEEDS TO MAKE CONSUMERS HOLE
AGAIN OF THE ONE OF THE GREAT
ACHIEVEMENTS OF THE FEDERAL
CONSUMER BUREAU WAS THAT IT
REFUNDED TWELVE BILLION DOLLARS
BACK TO YOU KNOW TWENTY NINE
MILLION PEOPLE.
BUT UNFORTUNATELY THEY'RE NOT
REALLY GOING TO DO THAT ANYMORE
IN FACT THEY'VE REALLY STEPPED
DOWN A LOT OF THEIR ENFORCEMENT
UNDER THE CURRENT ACTING
DIRECTOR MICK MULVANEY. WHO WAS
VERY HOSTILE TO THE AGENCY WHO
DOESN'T BELIEVE THAT IT SHOULD
EXIST?
BUT THAT'S YOU KNOW THAT WILL
NOT IS INCREDIBLY.
YOU KNOW SAD AND HEARTBREAKING
FOR US TO SEE AT THE FEDERAL
LEVEL WE CAN DO SOMETHING HERE
IN CALIFORNIA IT'S VERY
IMPORTANT FOR THE DB OUT HOW THE
FLEXIBILITY WITHOUT HAVING TO GO
TO COURT. TO USE ADMINISTRATIVE
PROCEDURES TO RETURN MONEY BACK
TO CONSUMERS AND OF COURSE TO
MAKE SURE THAT OUR LAW IS
PROVIDING PERCEPTIVE VISION OF
AUTHORITY TO ISSUE PENALTIES FOR
WHAT CAN YOU REALLY EGREGIOUS
VIOLATIONS OF THE LAW. SO FOR
FOR THESE REASONS ARE WE I'M
REALLY APPRECIATE THE CHAIRS
LEADERSHIP AND TAKING THIS ON.
IT'S INCREDIBLY TIMELY AN
INCREDIBLY IMPORTANT FOR THESE
REASONS WE ARE IN STRONG SUPPORT
OF THE BILL AND REQUEST NIGHT
THAT.
DO WE HAVE ANY OTHER WITNESSES
IN SUPPORT.
GOOD AFTERNOON RONALD COLMAN
HERE ON BEHALF OF THE CALIFORNIA
LOW INCOME CONSUMER COALITION
CLICK ALSO IN STRONG SUPPORT
THANK YOU.
BUT I FEEL UP ON THAT FROM THE
CENTER FOR RESPONSIBLE LENDING
AND STRONG SUPPORT AS WELL.
NOW ARE ANY WITNESSES IN
OPPOSITION.
MISTER VICE CHAIR MEMBER SCOTT
GOVERNOR HERE ON BEHALF OF THE
CALIFORNIA FINANCIAL SERVICES
ASSOCIATION WE DON'T OBJECT TO
DB EL UPDATING ITS ENFORCEMENT
POLICIES. ARE OBJECTION WITH THE
BILL LIES IN THE TREMENDOUS
AMOUNT OF LATITUDE THIS BILL
GIVES DVL.
MOST LAWS INCLUDING THOSE
REFERENCED IN THE ANALYSIS
ACTUALLY SPELL OUT LEVELS OF
PENALTIES FOR EXAMPLE AND IT
BURDEN THERE WILL BE TWO HUNDRED
FIFTY DOLLARS.
FIRST WILLFUL VIOLATION BE FIVE
THOUSAND DOLLARS AND SO ONE AND
SO ON AND THAT'S DONE TO PROVIDE
SOME.
CERTAINTY AND ENSURE THAT.
TO A TWENTY FIVE THOUSAND DOLLAR
FINE AND IT'S.
DISCRETION.
THERE ARE NO PARAMETERS THERE
SO EVEN AGAIN THE LAW FINANCIAL
CODE FIVE ZERO FIVE ZERO ZERO
WHICH IS REFERENCED IN THE
ANALYSIS PROVIDES THAT VERY
THING A PROVIDES THAT. CERTAIN
PENALTIES WILL BE ADJUSTED BASED
ON.
THE SEVERITY AND AS THE AUTHOR
NOTED THIS DOESN'T ACTUALLY
APPLY JUST A NEGLIGENT WILLFUL
PENALTIES WITH TWENTY FIVE
THOUSAND DOLLARS APPLIES TO WAS
WHATEVER DB O. WANTS IT TO.
SURE THEY HAVE TO PROVIDE A
FINDING BUT WE ARE SEEKING A
SPECIFICITY AND LEVELS OF
PENALTIES CONSISTENT WITH.
THE VAST MAJORITY OF CALIFORNIA
LAW
SO FOR THESE REASONS WE HAVE
OPPOSE POSITION WAS AMEND.
OR. ANY OTHER WITNESSES IN
OPPOSITION.
STATEMENT OUT A PRETTY ON BEHALF
OF THE INNOVATIVE LENDING
PLATFORM ASSOCIATION AND
OPPOSITION.
BUT ANYMORE.
I SAY NONE ANY QUESTIONS FOR
MARK ME MEMBERS.
AFTER COSTA.
UP THE E. I MORE OF A STATEMENT
THAN A REAL ANYTHING I I THINK.
I'M I'M GOING THROUGH THIS I
HAVE HOPE OF SOME CONCERNS
ABOUT.
AND I UNDERSTAND WE'RE GOING
WITH THIS SITE AYE APPLAUD IT I
I HAVE SOME SIGNIFICANCE EARNS A
WITH THE.
THE FACT THAT WE'RE GOING FROM
TWENTY FIVE HUNDRED DOLLARS FOR
WILLFUL VIOLATION.
TO TWENTY FIVE THOUSAND OR FOR
ANY VIOLATIONS SPELLED OUT HERE
IS THAT SOMETHING YOU'RE WILLING
TO TELL TO LOOK AT THE LANGUAGE
ON BECAUSE THAT'S.
IT SEEMS LIKE A PRETTY BIG JUMP
THERE SO I JUST WANT TO BE CLEAR
TO THAT DB OWES ENFORCEMENT
AUTHORITY IS SUBJECT TO
RESTRICTIONS AND CALIFORNIA'S
ADMINISTRATIVE PROCEDURES ACTS.
SO HEARINGS ARE PRESIDED OVER BY
AN ADMINISTRATIVE LAW JUDGE AND
A KEY AND AN ACCUSED PERSON HAS
THE RIGHT TO APPEAL ANY DECISION
SO IT'S NOT JUST ARBITRARY THERE
REALLY IS A LOT JUDGE INVOLVED.
TO MAKE THAT DETERMINATION AND
SO.
YEAH WELL BERMAN RIGHT AYE AYE
AYE THAT'S GOOD I'M GLAD TO HEAR
THAT.
BUT I AM ALSO CONCERNED BECAUSE
WE'RE WE'RE REFERENCING OTHER
BILLS HERE AND THE LAW.
ACTUALLY HAS YOU KNOW
STIPULATES METHODOLOGIES WE
DON'T HEAR.
IT'S SET YOU NINE THE COMMITTEE
ANALYSIS.
.
I I THINK THAT'S PROBABLY THE
BIGGEST TALKING POINT THAT I
HAVE WITH THIS. I MEAN IT'S
JUST.
ANY KIND OF.
YOU DIDN'T DOT AND I ACROSS CITY
WE COULD END UP I'M NOT SAYING
WE WILL.
BUT WE COULD END UP WITH THIS
TWENTY POUNDS ARE FINE IF THE BO
JOE'S TO DO THAT IS THE BE ALL
HERE TO.
NO DVRS NOT HERE BUT THE BILL
ALSO REQUIRES THE DDO BASED THE
PENALTY ON THE AMOUNT OF.
GRAVITY OF THE VIOLATION THE
HISTORY OF A PERSON'S PREVIOUS
VIOLATIONS AND WHETHER THE
PERSON'S ACTIONS WERE NEGLIGENT
WILL FOR OUR KNOWING SO THERE
ARE SOME METRICS. ON AND THOSE
METRICS COMBINED WITH EXISTING
LAWS IS WHAT WOULD HELP US THE
YOU KNOW A AT ADMINISTRATIVE LAW
JUDGE DETERMINE WHAT THAT WOULD
BE.
OKAY DO YOU HAVE. ABOUT WHERE
THAT HIS THE EXISTING LAWS ARE.
NOT YEAH ACTUALLY YOU'RE AYE AYE
IT'S INDIAN OUNCES BUT ALSO
THOSE I'M ESTIMATES THAT THEM
AND IF YOU'RE LOOKING AT THE
BILL ITSELF. IT IS ON PAGE NINE.
AND IT IS LINE EIGHTEEN TWENTY
TWENTY AT TWENTY TWO SEVENTY ONE
THREE POINT ONE YOU'RE READY FOR
THIS QUESTION MARGIN.
OKAY AND THEN YOU CAN ALSO LOOK
AT THE LAST THAT THREE LINES
THIRTY SEVEN THREE THIRTY NINE
OKAY.
GREAT WELL TAKE A LOOK AT THAT
OUR PUBLIC PLAYOFF AT THIS
PARTICULAR POINT BUT BUT THANK
YOU FOR YOU KNOW COGENT ANSWERS
ON THAT. DOESN'T PHILLIP BETTER
THINK DIFFERENTLY
AND LIKE.
BUT ANYWAY.
ALRIGHT HERE ARE. THE.
ASSEMBLYMAN ON THE MOON SO REPLY
TO OPPOSITION A STATEMENT MY
LOGO.
SURE.
.
YOU KNOW IT CERTAINLY WE
UNDERSTAND THE A LJ.
.
PROVISION.
THE PROBLEM BEING IS TO
CHALLENGE THIS ESPECIALLY FOR A
SMALL CFL COULD EXCEED THE VALUE
OF THE.
PENALTIES THEMSELVES.
MORE TO THE POINT. WHEN A
PENALTY OR VIOLATION OCCURS.
IF YOU MAKE A VIOLATION FOR
EXAMPLE ON THE PAPERWORK
ODDS ARE THAT VIOLATION WILL
OCCUR ON EVERY SINGLE.
LONG SO YOU COULD HAVE HUNDREDS
OF VIOLATIONS SO WELL EVEN IF
THERE INADVERTENT ERRORS.
SO WILL DB OUR COULD DPO USE
THAT AS AN EXCUSE TO RATCHET UP
THE PENALTIES SAYING THERE'S A
HISTORY OUR PATTERN WHEN IN FACT
THE VIOLATION WAS A RECURRING
VIOLATION. THAT WAS INADVERTENT
IN NATURE
AGAIN TO THE EXTENT OF THE LAW
WAS CONSISTENT WITH OTHER WHAT'S
WITH THAT INADVERTENT ERRORS MAY
BE. YOU KNOW FIND X. Y. Z. THAT
WOULD PROVIDE SOME CERTAINTY AND
THAT'S WHAT WE ARE LOOKING.
I I THINK I'VE GONE THROUGH THE
RESPONSE ANNA AND SO I MEAN YEAH
I THINK THAT THERE IS SOME OF
THE METHODOLOGY THAT THAT IN
PLACE AND ON ITS CONSISTENT WITH
OTHER LAWS THAT WE HAVE IN
PLACE.
AND AGAIN THE THE INTENT IS NOT
WHAT I MEAN WE DON'T WANT.
I ANY OF THESE AGENCIES IT TO.
US BE IN VIOLATION UP BUT THE
INTENT IS THAT THE TWENTY FIVE
GOING FROM TWENTY FIVE TO TWENTY
FIVE THOUSAND IS THAT IT'S
MEANINGFUL ENOUGH SO THERE WILL
BE AN INTERESTS NOT TO VIOLATE.
AS OPPOSED I THINK YOU JUST
TALKED ABOUT HOW EXPENSIVE IT IS
AND IF IT'S GONNA GO THROUGH AN
ADMINISTRATIVE LAW JUDGE I'M SO
THE HOPE IS THAT DB ó CAN HELP.
ALL THESE ORGANIZATIONS BEFORE
IT EVER GETS TO THE POINT OF A
VIOLATION THIS IS IF THERE IS
EVIDENCE THERE IS HISTORY OF A
VIOLATION THEN THIS IS WHERE
THIS COMES IN. I'M AND I THINK
THAT THAT'S REALLY IMPORTANT TO
KNOW THAT YOU KNOW IT IS OUR
HOPE AND THAT THERE ARE
EVALUATION.
IT
THAT THERE ARE INTO ANY
VIOLATIONS I THINK IT'S A HOPE
OF DB ó THAT THERE ARE
VIOLATIONS AS WELL.
YOU KNOW MY FEELING IS THAT I
THINK THIS IS A PLAN FOR THAT
INCREASES SUCH AS THE TWO SEVERE
AND THEN IF YOU CAN ACCOMMODATE
UP POSITIONS ARE AWESOME POINT
OF VIEW SO THAT WOULD BE MORE
REASONABLE.
AND.
WHAT THE ANY CASES?
THAT THAT BEHIND THAT DISAPPEAR
ALL WHOM Y..
THAT MUCH DRASTIC INCREASE. IN
ALL I'M I'M TRYING TO YOU KNOW
COMPARED THE AMOUNT THAT THAT
THE YOU ARE. INFORMED THREE FIVE
HUNDRED THIRTY FIVE THOUSAND IN
AYE I TRY TO NOT IN SO JASTA. A
DEFINED FROM THIRTY FIVE DOLLARS
TO FIFTY ARE ARTISTS HOPEFUL ON
VIOLATING DROPPING. SOME HAS OF
THOSE MATERIALS ON THE FREEWAY I
RAN INTO A LOT OF WELL NOW
OPPOSITION SO BUT THE HERE IS
SUCH A STIR. IN A TEN FOR THE
INCREASES TO IT CAN BE.
DETRIMENTAL AND TO CBO ON
CERTAIN YOU KNOW ON INTENDED.
THE PDF FILE ARROWS TO UP
VIOLATIONS OF THAT'S WHY IF YOU
CAN ACCOMMODATE THAT. THE
OPPOSITION OPPOSITION SO NO SIDE
OF OUR.
NO APPEALED THEN IT MIGHT BE WE
SET UP. THERE THERE IS AN APPEAL
IN PLACE AND I THINK IT'S ALSO
IMPORTANT THAT THE MARKET HAS
pIS MUCH BIGGER. A AND I AS I
NOTED IN AT THE IT'S A NOTED IN
THE ANNOUNCES I ALSO NOTED IN MY
COMMENTS AND THAT THIS IS
CONSISTENT WITH OTHER LAWS IN
PLACE AND OTHER FEES OF TWENTY
FIVE THOUSAND. I'M OR IN THAT
RANGE.
WITH CALIFORNIA RESIDENTIAL
MORTGAGE LENDING ACT AND OTHERS
AND SO THAT IS STATED I'M IN THE
ANALYSIS.
AND I THINK IT'S JUST AGAIN
IT'S IMPORTANT TO NOTE THAT THIS
AD THE INDUSTRY IS BIGGER AND
THE INTENT AND DESIRE IS NOT FOR
VIOLATIONS TO TAKE PLACE BECAUSE
AT THE END OF THE DAY A
VIOLATION IS REALLY. I'M A
VIOLATION AGAINST THE CONSUMER
SO WE WANT CONSUMERS TO USE
PRODUCTS THAT.
ARE CONSISTENT WITH WHAT THEY
WERE INTENDED FOR WE WANT ON
THEM TO BE REALLY THE
BENEFICIARY THE BENEFICIARY OF
THESE PRODUCTS AND SO. WE
BELIEVE THAT THIS IS IN LINE
WITH THAT.
SONOROUS.
THANK YOU CHAIR AND DABBED VICE
CHAIR AND ALSO SOMEONE MEMBER
THANK YOU FOR THE BILL AYE. AYE
YOU ADDRESSED SOMEONE ABOUT THE
APPEALS PROCESS WHAT WHAT IS THE
APPEALS ó WHO.
HOW HOW IS IT THAT IF SOMEONE IS
ASSESSED A FINE?
NOW I FIND AND THEY THEY BELIEVE
THAT.
IT WAS NOT JUST
HOW WOULD THEY GO ABOUT.
DO THEY GO BACK TO THE VERY ONE
THAT FIND THEM.
SO THEY LEAD AND I'M GONNA
ACTUALLY.
UNDER THE ADMINISTRATIVE LAW
JUDGE WOULD MAKE THAT APPEAL.
OKAY IN THE ADMINISTRATIVE LAW
JUDGE WAS THE.
THAT JUDGE ALSO THE ONE THAT
ASSESSED THE FINE.
THAT LOOK GOOD.
SO.
CERTAIN
THE DB ó REQUESTS.
THE ACTION THROUGH THE
ADMINISTRATIVE LAW JUDGE DB ó.
ALRIGHT SO YOU SEE THE COURT.
SO YOU YOU BASICALLY GO BACK TO
THE COURT AND SAY TO THE VERY
LOWS THAT FIND CHIU.
AND YOU.
YES YOU GO BACK TO THE THE ONES
WHO FIND YOU TO SAY THAT THEY
THAT YOU HAVE EVIDENCE THAT WAS
THAT.
AND SO THEY HAVE THAT MIND A
FINDING AGAINST HIMSELF.
NO THIS A SUPERIOR COURT OKAY
THIS IS NOT EVEN TO THE EXTENT
THAT IS A SEPARATE IF I DON'T
AGENCY CORRECT OKAY.
JUST TRYING TO FIGURE OUT.
AND WHAT KIND OF SAFETY NETS
THERE ARE FOR ANY INJUSTICES
THAT MIGHT TAKE PLACE OR AN
AGENCY. THAT MAY HAVE DONE
SOMETHING AND ACCESS I'M I'M I'M
FOR WHAT YOU'RE TRYING TO
ACCOMPLISH HERE AND I. JOHN
TRYING TO HELP MAKE THE CASE BUT
I JUST WANNA MAKE SURE THAT
THERE ARE.
PROTECTIONS FOR THE BUSINESS
AND OR FOR THE INDUSTRY AS WELL
AS.
PROTECTIONS WERE TRYING TO
PROVIDE FOR THE CONSUMERS.
I'M SORRY I DID MEAN INTERRUPTS.
WHAT YOU'RE DOING SO THIS IS
CONSISTENT WITH ANY WAY THAT
OTHER?
I REGULATORS WOULD GO THROUGH
THIS TO THIS IS NOT INCONSISTENT
WITH WHAT YOU SEE IN OTHER
SPACES BOTH IN THIS INDUSTRY AND
OUTSIDE OF THIS IS A COMMON
PRACTICE IS THAT ON OTHER
INDUSTRIES I MEAN. AND OUR OTHER
AGENCIES AS WELL RIGHT OKAY
THAT'S THAT THIS WOMAN.
ANY OTHER QUESTIONS FROM THE
COMMITTEE.
FOR AUSTIN YEAH YOU NEED WHO
SETS UP A BIT AFTER THE FACT
THAT I WANT TO DATE A PICKUP ON.
A YOU'D MENTION THAT IT'S
CONSISTENT WITH OTHER AGENCIES
AND OTHER.
OTHER BILLS ETCETERA BUT YOU
ALSO MENTION THE THE CALIFORNIA
RESIDENTIAL MORTGAGE MORTGAGE
LENDING ACT. OB DO YOU HAVE THAT
LANGUAGE AND I DON'T MEAN TO BE.
YEAH SO TIGHT ON THIS BUT YOU'RE
REFERENCING.
OTHER LANGUAGE DO YOU HAVE THAT
LANGUAGE BECAUSE I MY
UNDERSTANDING IS THAT LANGUAGE.
SPELLS OUT THE PENALTIES SPELLS
OUT THE STEPS IN THE PROCESS
NOT.
ALLUDES TO A STEP IN A PROCESS
THAT'S REALLY. MY CONCERN SO MY
CONCERN FOR YOU IS THAT IF
YOU'RE GONNA SAY IT'S JUST LIKE
THIS OTHER.
YOU KNOW THING OVER HERE IF THE
IF THE FINE AMOUNT.
NOT THE FINAL WITHIN THAT RIGHT
OUT AND SO THAT OF THE OTHER
PROCESS THE OTHER BILLS WITHIN
TO MISTER REASONS RIGHT IS
WRITTEN GRAVITY. OF THE
VIOLATION.
THE HISTORY. OF THE PREVIOUS
VIOLATIONS AND WHETHER THE
PERSON'S ACTIONS WERE NEGLIGENT
WILL FOR OUR KNOWING OKAY BUT
THAT THOSE ARE ALL OF THOSE THAT
HAD SO RIGHT AND SO THAT'S WHY
IT WOULD IT BE DB ó. IT WOULD
BE AN ADMINISTRATIVE LAW JUDGE
BUT THROUGH IT HAS AMPLE
EXPERIENCE WITH.
THIS OBJECTIVE AND SUBJECTIVE
INFORMATION TO MAKE THAT
DETERMINATION BUT.
BUT LIMITED GUIDELINES AS IN AS
THE THE OPPOSITION POINTED OUT.
IN OTHER BILLS THEY IT SAYS
SPECIFICALLY YOUR FIRST
VIOLATION FOR WHOOPS I'M AYE I
SCREWED UP ON A PERIOD A COMMA
WHICH
RIGHT.
THAT'S TWENTY FIVE DOLLARS OR
FIFTY DOLLARS OR WHAT HAVE YOU
THIS COULD BE THE LETT THE MESS
HAVE LAW JUDGES SAYING HEY.
THIS COULD BE FIVE THOUSAND
DOLLARS FOR A PERIOD AND YOU DID
IT FOUR HUNDRED AND SEVENTY
THREE TIMES BECAUSE IT'S IT'S ON
A PREPRINTED FORM. SO NOMINEE GO
FORESTS HAVE DOLLARS PER
VIOLATION THAT THAT'S MY CONCERN
THAT IT'S NOT REALLY SPELLED OUT
HERE SO I'LL LEAVE IT AT THAT
BUT I I REALLY WANT TO BE CLEAR.
THAT I THE OTHERS OTHER BILLS
YOUR FRANK TO HAVE REAL
SPECIFICS ON
BUT THANK YOU.
GRAYSON AYE AYE AGAIN BY.
ASSEMBLY MEMBER SO IF I
UNDERSTAND CORRECTLY THIS IS
WHERE I WAS TRYING TO.
TO GO.
THE ADMINISTRATIVE JUDGES
INDEPENDENT FROM YES.
THE DB ó AND SO THERE'S THE
TIE THERE IS NOT ESTABLISHED
WHERE THEY'RE WORKING IN
CONJUNCTION.
IT SAID COMPLETELY INDEPENDENT
PARTY AND THAT'S WHAT YOU'RE
SAYING IS THE LINE OF PROTECTION
THAT YOU'RE TRYING TO PROVIDE.
TO THE INDUSTRY WHILE TRYING TO
REACH OUT PROVIDE I'M NOT TRYING
TO PUT WORDS IN YOUR MOUTH SO
THAT WHILE YOU'RE TRYING TO BURY
MY LOOK AT LEAST I THINK WHILE
YOU'RE TRYING TO PROVIDE
PROTECTION FOR THE CONSUMER. IS
THAT THE CASE CORRECT.
REVIEW THE QUESTIONS FROM THE
COMMITTEE.
SEEING NONE OF MADAM CHAIR WAS
LIKE CLOSE I AT RESPECTFULLY ASK
UP FOR AN AYE VOTE I THINK THIS
IS AN IMPORTANT AT BILL TO
PROTECT CONSUMERS AND TO ENSURE.
THAT WE HAVE A SYSTEM IN PLACE I
WITH LIMITED AND NO VIOLATIONS.
THANK YOU MANAGEMENT THERE'S
ENJOYS A DO PASS RECOMMENDATION.
MADAM SECRETARY PLEASE CALL THE
ROLL.
ON APOLOGIZE IS OUR MOTION A
SECOND.
THANK YOU.
AB TWENTY NINE EIGHTY FOUR DO
PAST COMMITTEE ON
APPROPRIATIONS.
LIMON. I
LIMON AYE CHEN.
GENO ACOSTA.
OKAY ACOSTA NOT VOTING BERMAN.
BURKE.
CALDERON.
CALDERON AYE CHOI.
CHOI NO. GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE GRAYSON.
GRAYSON AYE STONE.
WEBER.
WEBER I.
THIS WILL BE ON CALL MANAGER.
AND MEDICARE AT YOUR PLEASURE
ALRIGHT SO NOW WE HAVE AB AT
THIRTY TEN. AND A. B. THIRTY TEN
SEEKS TO STRENGTHEN CURRENT ONE
LOAN AT A TIME POLICY FOR PAYDAY
LENDING AND ESTABLISH A REAL
TIME DATA BASE TO HELP LENDERS
AND THE DEPARTMENT OF BUSINESS
OVERSIGHT. MAKE SURE ONE LOAN AT
A TIME LENDING IS NOT VIOLATED.
IN NINETEEN NINETY SIX S. B.
NINETEEN FIFTY NINE.
BY SENATOR CHARLES CALDERON
ESTABLISHED THE PAYDAY LOAN
PROGRAM THAT ORIGINAL
LEGISLATION CONTAINED ONE LOAN
AT A TIME LANGUAGE PROHIBITING
ANY LENDER FROM ENTERING INTO A
SECOND PAYDAY LOAN WITH THE BAR
BEFORE THE FIRST PAYDAY LOAN WAS
PAID OFF. THAT LANGUAGE REMAINS
IN CURRENT LAW.
THE LEGISLATURE SET A MAXIMUM
PAYDAY LOAN LIMIT OF THREE
HUNDRED DOLLARS IN ORDER TO KEEP
THE SIZE OF THE LOAN AT THE
LEVEL THAT COULD BE PAID OFF
WITHIN A PAYDAY CYCLE OR SOON
THEREAFTER.
AT THIS TIME I'D LIKE TO REMIND
ALL THE MEMBERS OF THE COMMITTEE
THAT THE LENDERS THAT WISH TO
LAND ABOVE THREE HUNDRED PAYDAY
LIMIT CAN DO SO. AND ARE
GOVERNED BY THE CALIFORNIA
FINANCE LAW OR CFL.
THIS IS IMPORTANT TO REMEMBER AS
OVER THE YEARS BARS HAVE FOUND A
WAY AROUND THE ONE LOAN AT A
TIME POLICY AND THE WAY TO
EXTEND THE DURATION OF PAYDAY
DEBT. MUCH LONGER THAN
ENVISIONED WITH THE ORIGINAL
LENDING PROGRAM.
LOAN STACKING.
OR TAKING OUT MULTIPLE LOANS AT
A FROM MULTIPLE LENDERS AT THE
SAME TIME ALLOWS BARS TO FAR
EXCEED THE THREE HUNDRED DOLLAR
PAYDAY LOAN LIMIT ORIGINALLY
ESTABLISHED BY S. B. NINETEEN
FIFTY NINE.
AT ONE TIME ONLINE LINING THE
NOT EXIST AND THE THOUSANDS OF
PAYDAY LENDING STORES WERE NOT
YET BUILT.
IN TWENTY SIXTEEN THE AVERAGE
APR OF A PAYDAY LOAN WAS THREE
HUNDRED AND SEVENTY TWO PERCENT
AS REPORTED BY THE DDO WITH MORE
BUYERS TAKING OUT MORE THAN TEN
LOANS PER YEAR THAN BARS TO TAKE
OUT JUST ONE.
UNFORTUNATELY WITHIN THE PAYDAY
LOAN PROGRAM WHEN A BORROWER
CANNOT PAY BACK THE LOAN WITHIN
A SINGLE PAYER PERIOD FAR TOO
MANY BARS OPT OUT TO TAKE. A
LONG SEQUENCE OF LOANS GETTING
PAID PAYING OFF THE LOAN AND
THEN IMMEDIATELY TAKING OUT A
NEW LOAN.
THE SPEED AT WHICH THESE FEES
ADD UP FOR BARS OF THE BENEFIT
OF THIS ACCESS TO CAPITAL IS
DISTURBING. THE DB ARE REPORTS
THAT THE AVERAGE CONSUMER TAKES
OUT SIX POINT FOR PAYDAY LOANS
PER YEAR.
THE CFL RECOGNIZES THE GREATER
RISK TOOK BARS TO TAKE OUT LOANS
GREATER THAN THREE HUNDRED
DOLLARS THIS IS WHY THE CFL CAPS
INTEREST RATES AND PROVIDES FOR
GREATER CONSUMER PROTECTIONS
ABOVE THE THREE HUNDRED DOLLAR
PAYDAY LOAN LIMIT UP TO TWENTY
FIVE HUNDRED.
THIS BILL DOES NOT SEEK TO AND
PAYDAY LENDING.
PAYDAY LENDING CAN BE A VALUABLE
TOOL FOR CALIFORNIA'S WHEN USED
PROPERLY PROPERLY WITHIN
REASONABLE LIMITS.
THIS BILL SEEKS TO RE ESTABLISH
THE ORIGINAL PAYDAY LOAN SPEED
LIMIT OF ONE LONE AT A TIME FOR
NO OTHER REASON THAN TO PROTECT
THE PEOPLE OF THE STATE OF
CALIFORNIA.
WITH ME TODAY I HAVE SUSAN A
MARTIN DEL SENIOR ATTORNEY FOR
THE CONSUMERS YOUR UNION TEST
TESTIFY IN SUPPORT.
THANK YOU MADAM CHAIR ISO SAN
MARTIN DELF WITH CONSUMERS
UNION.
I ALONG WITH A COALITION OF
OTHER CONSUMER GROUPS SUBMITTED
A LETTER IN STRONG SUPPORT OF
THIS BILL WE THINK IT'S
INCREDIBLY COMMON SENSE AND IT
DOES REALIGNED ALONG WITH THE
ORIGINAL INTENT.
OF THOSE WHO ORIGINALLY BROUGHT
PAYDAY LENDING INTO THE STATE
AYE SPEED LIMITS A GOOD TERMS I
THINK RIGHT WORK SPEED RIGHT
NOW.
IT IS AB WITH BRICK AND MORTAR
AND ONLINE THE LENDING STORES
AGGRESSIVELY MARKETING TO
CONSUMERS PEOPLE GET IN OVER
THEIR HEAD THEY GET IN OVER
THEIR HEAD REALLY QUICKLY. AND
HAVING TO BORROW FROM PETER TO
PAY PAUL AS IT WERE.
REALLY PUTS PEOPLE INTO A
SITUATION THAT CAN BE INCREDIBLY
DEVASTATING OF COURSE AS THIS
COMMITTEE HAS HEARD YOU KNOW
MORE THAN ONCE I OF THESE LOANS
ARE VERY EXPENSIVE THEY'RE VERY
DIFFICULT TO REPAY. AND THEY CAN
PUT PEOPLE INTO INCREDIBLE
FINANCIAL STRESS AND KENYA RUIN
THEIR CREDIT AND INCREASE AND IT
GREATLY IMPACT THEIR LIVES ON IN
VERY NEGATIVE WAYS AND SO I YOU
KNOW WE BELIEVE THAT THIS WOULD.
ENSURE AYE AND AS OTHER STATES
HAVE DONE YOU A SETTING UP A
DATABASE TO ENSURE THE LENDERS
KNOW IF SOMEONE'S ARE INDEBTED
AND MAYBE WE SHOULDN'T. STOCK
THEM UP EVEN FURTHER WITH MORE
DEBT THE COULD AT THE COULD
EXACERBATE THE ALREADY STRESSED
CIRCUMSTANCES AT THE VERY COMMON
SENSE APPROACH.
WILL BE BELIEVE OF COURSE AS
MANY CONSUMER GROUPS DO THAT
THERE IS MORE TO BE DONE TO
REFORM THIS INDUSTRY MORE
COMPREHENSIVELY BUT WE DO
APPRECIATE THIS MEASURE BECAUSE
WE THINK THAT IT IS A GOOD. RIDE
NARROWLY TAILORED SOLUTION TO
SLOW DOWN A LITTLE BIT AND TO
NORMALIZE OF THE EXISTING.
MARKETS THAT WE CAN THEN TAKE A
BREATH IN THE MOVE FORWARD WITH
A GREAT REFORM OF OF OF THE
INDUSTRY SO FOR THESE REASONS WE
SUPPORT THE BILL AND REQUEST
RIGHT UP.
THE OTHER WITNESSES IN SUPPORT.
WITNESSES IN OPPOSITION
.
THANK YOU A VICE CHAIR I
APPRECIATE BEING ABLE TO COME
BACK A COUPLE WEEKS AGO WE WERE
HERE. ARE MY NAME IS DAN
GWALTNEY ON THE PRESIDENT A
CALIFORNIA FINANCIAL SERVICE
PROVIDERS WE HAD THE. PLEASURE
OF INTER DO OUR OF SPEAKING LAST
TIME ON ON A BILL THAT. UP LIKE
I KIND OF RAP ALWAYS UP IT AND
ALL THESE DIFFERENT BILLS UP AND
OUT OF ONE PACKAGE IT'S ABOUT
CONSUMER ACCESS.
THE SHORT TERM CREDIT ON ONE
THING I DID WANTED TO BEFORE IT
REALLY INTO IT I WANTED TO.
LET YOU KNOW THAT ADD TO THE
HISTORY OF OF WHAT WAS ALREADY
PRESENTED HERE TODAY AS WELL AS
WHAT'S IN THE ANALYSIS. WE
ACTUALLY NEGOTIATED THIS I WAS
ACTUALLY THERE IN TWO THOUSAND
AND TWO AND THREE WHEN WE WERE
NEGOTIATING AT WHEN WE MOVED A
LOT OF THE DVL. AND CONSUMERS
UNION ANNA AND MEMBERS LIKE ON
MYSELF AND OTHERS ACTUALLY
NEGOTIATED WITH CONSUMERS UNION
AND THEY SUPPORTED. OF THE BILL
AT THE TIME IT WAS UNDERSTOOD
THAT IT WAS NOT ONE LOAN PER
INDUSTRY WAS ONE LONE RESTRICTED
PER PER LENDER AND BORROWER. SO
UP AND THAT'S BEEN THE
ENFORCEMENT THAT THIS IS BEEN
THE ENFORCEMENT. OF THE BY THE
DDO SINCE THEN THERE'S BEEN AN
ADDITIONAL ADVISORY HEARINGS ON
THIS THAT WE PARTICIPATED WITH
THE DDO AND CONSUMERS UNION
RIGHT AFTERWARDS. AND WAS ALL
UNDERSTOOD THAT THE BAR WAS
RESTRICTED TO ONE LONE PER OF
PER LENDER BUT NOT FOR INDUSTRY.
UP OUR GENERAL CONCERN WITH THIS
BILL AND WE WERE IN OPPOSITION
UNFORTUNATELY TO IT BECAUSE.
IT'S ONCE AGAIN IT'S RESTRICTING
ACCESS TO CREDIT OF THE BILL
THAT THE ORIGINAL PAYDAY LAW WAS
ENACTED TWENTY ONE YEARS AGO. IN
TWENTY ONE YEARS AGO AND ONCE
AGAIN IT'S NOT A THREE HUNDRED
DOLLAR LOAN THIS IS A TWO FIFTY
FIVE WON'T REALLY ABOUT TWO
HUNDRED FIFTY DOLLARS IS WHAT A
CONSUMER CAN REALLY WALK OUT
WITH GIVEN THE FEES.
AND SO THAT HAS NOT INCREASED
SINCE TWO TO A TIP FOR TWENTY
ONE YEARS BUT OF COURSE THE
EXPENSES TO THE CONSUMER HAVE
INCREASED. DURING THAT PERIOD
TIME ALONG WITH OBVIOUSLY
EXPENSES TO THE LENDER AS WELL.
SO OF THERE'S JUST SOME
ADDITIONAL CONCERNS THAT WE
HAVE.
WE WE WANT TO MAKE SURE THAT
THERE'S ACCESS ACROSS THE BOARD
IN UNFORTUNATELY WE I FEEL LIKE
WHETHER IT'S.
I AB TWENTY FIVE HUNDRED
INSTALLMENT LENDING OVER TWENTY
FIVE HUNDRED NOW WE'RE LOOKING
AT LENDING UNDER THREE HUNDRED.
WE'RE KINDA SQUEEZING.
A BALLOON WHAT WE'RE DOING IS IS
WORK WERE SQUEEZING SOMETHING
THAT REALLY ISN'T DEMAND IS
STILL THERE IF WE'RE GONNA
RESTRICTED HERE. WE WOULD LOVE
TO SEE A REAL APPROACH TO SOLVE
THIS HOLISTICALLY AND THAT
APPROACH.
IS TO SOLVE THE CFL.
CUSTOMERS WOULD NOT HAVE TO GO
TO MULTIPLE PAYDAY BORROWER OF
PAYDAY LENDING COMPANIES.
TO GET THE FUNDS THAT THEY NEED
IF IT WAS AVAILABLE UNDER THE
CFL AT A RATE WHERE A. WILLING
LENDER AND WILLING BORROWER CAN
GET TOGETHER AND THE LENDER CAN
MAKE A REASONABLE.
A REASONABLE FEE AND PROFIT ON
THAT LOAN IN THE PARKING AT THE
MONEY THEY NEED WE DON'T HAVE
THAT.
OUR ASSOCIATION'S BEEN HER
ALMOST EVERY YEAR WE'VE HAD
BILLS THAT WE'VE INTRODUCED
WE'RE TRYING TO HELP FIX THIS
PROBLEM BUT WE REALLY NEED THE
LEGISLATURE TO HELP AS WELL. IF
YOU WERE TRYING TO RESTRICT THE
OTHER ENDS OF IT BUT REALLY THE
CORE PROBLEM IS CUSTOMERS NEED
TO SET A THOUSAND DOLLAR LOAN.
THEY NEED A SEVEN HUNDRED DOLLAR
LOAN AND RIGHT NOW IN FORCE IN
THE PILOT PROGRAMS NOT
SATISFYING THAT. AND AS WE EAT
AWAY THE EDGES WE'RE JUST GONNA
LOSE THESE CONSUMERS TO
UNLICENSED LENDERS.
THANK YOU.
BOB.
THANK YOU BYE CENTER TOWN.
I'M TONY HADLEY.
ADVICE SENIOR VICE PRESIDENT OF
REGULATORY AFFAIRS FOR
EXPERIENCE CREDIT REPORTING
AGENCY THAT SPACE TO COSTA MESA
CALIFORNIA.
I'M HERE NOT SO MUCH TO ARGUE
WITH THE.
THE GOAL OF THE LAW BUT TO SAY
THAT THERE'S A BETTER WAY.
WHAT WE'RE?
ENVISIONING CREATING HERE.
IS ESSENTIALLY A STATE RUN
SYSTEM WHERE AN INFRASTRUCTURE
ALREADY EXISTS IN THE
MARKETPLACE.
AT THE STATE RUN SYSTEM WOULD
COPY OTHER LAWS THAT HAVEN'T
BEEN VERY EFFECTIVE IN ACTUALLY
REDUCING.
.
THE.
ISSUES WITHOUT.
BUT PAYDAY LENDING WHAT THEY DO
IS CREATE A SILO OF INFORMATION.
WITH THAT INFORMATION ONLY GOES
TO THE LENDER TO TELL THEM
WHETHER THERE'S ANOTHER LONG
OUTSTANDING.
AND WHAT IT DOES IS IGNORES WHAT
REALLY IS AT THE HEART OF WHAT
WE NEED TO DO WITH THESE
CONSUMERS AND THAT HAS HELPED
THEM BUILD BETTER CREDIT
HISTORIES.
SO I'M SUGGESTING. THAT THE
STATE MIGHT WANT TO CONSIDER.
LOOKING AT THE EXISTING
INFRASTRUCTURE THAT EXISTS ARE
FOR SPECIALTY CREDIT BUREAUS IN
THE CASE OF EXPERIENCE WE RUN
CLARITY SERVICES THERE ARE
COMPETING. ARE. UP ORGANIZATIONS
WITHIN THE MARKETPLACE THAT HELP
LENDERS IN THE PAID A SHORT TERM
ONLINE LENDING SPACE.
.
WITH NOT ONLY. DATA BUT DATA
ANALYTICS TO REALLY GET TO MORE
THAN JUST DOES THIS PERSON HAVE
AN OUTSTANDING LOAN.
BUT IT. IS THIS PERSON
CREDITWORTHY AND CAN THIS PERSON
REALLY AFFORD THIS ABILITY TO
PAY.
SO THESE TYPES OF DATA ANALYTICS
COULD COME INTO PLAY IF WE WERE
USING THE EXISTING.
SYSTEMS THAT ALREADY EXIST IN
THE MARKETPLACE RATHER THAN
CREATE A SILO.
IT JUST TELLS YOU THAT THE
PERSON IS TAKEN OUT A LOAN.
IF THEY ARE PAYING THEIR LOAN ON
TIME.
THEY SHOULD BE GIVEN CREDIT FOR
THAT.
WE SHOULD KNOW THAT THESE PEOPLE
HAVE A CREDIT HISTORY.
IF THEY CAN ESTABLISH A CREDIT
HISTORY WITH THE PAYMENT OF
SHORT TERM LOANS SOON OTHER
LENDERS WILL LOOK AT THEM AS
CREDIT WORTHY.
AND SEE THEM AS A AN INDIVIDUAL
THAT MIGHT BE A SUITABLE FOR
OTHER TYPES OF LOAN PRODUCTS AND
SERVICES THIS IS WHAT WE THINK.
IS MOST IMPORTANT FOR ROB. UP
FOR THE IDEA OF.
BOB CREDIT BUILDING AND
TRANSPARENCY IN CREDIT
TRANSACTIONS NOW.
OF THE REASON THESE.
.
CREDIT BUREAUS AREN'T WORKING AS
EFFICIENTLY AS THEY WOULD UNDER
THIS SYSTEM IS THAT NOBODY'S
COMPELLED TO REPORT IF YOU'RE
GOOD WHAT IF YOU'RE GOING TO
COMPEL.
AND AND SHE REPORT TO A STATE
BASED YOU CAN COMPEL THEM. TO
REPORT TO ONE OF THESE CREDIT
BUREAUS
AND THEN THESE CREDIT BUREAUS
CAN SHARE THAT INFORMATION WITH
OTHER CREDIT BUREAUS WHO ARE
MIGHT PERHAPS CERTIFIED BY THE
STATE.
THEN THE LENDERS COULD HAVE A
MARKETPLACE WHERE THEY COULD SEE
THE DATA THEY CAN LOOK AT DATA
ANALYTICS THAT COULD DETERMINE
BETTER ABILITY TO PAY. AND SEE
BETTER.
.
HUB PERFORMANCE AND BEHAVIOR
FROM THESE UP.
THE CONSUMERS ALL IN THE.
BROWN OF ATTEMPTING TO TRY TO
HELP THEM BUILD A BETTER CREDIT
HISTORY FOR THEMSELVES AND WE
KEEP THEM SO I LOAD.
AN INVISIBLE WE JUST ADD TO THE
PROBLEMS.
WE ESTIMATE THERE FORTY FIVE
MILLION AMERICANS.
IN THE UNITED STATES WHO ARE
CREDIT INVISIBLE THEY DON'T HAVE
A CREDIT REPORT.
SO THEY'RE CAPTURED.
BY.
.
SHORT TERM LENDERS
IF WE COULD BRING THEM IN TO THE
VISIBILITY BAND EVEN THOSE
LENDERS COULD OFFER THEM
COMPETING PROCESSES BUT RIGHT
NOW THEY HAVE NO HISTORY ON THE.
WITHOUT DATA LINDER HATS TO.
ASSESS RISK SOME WAY IF THEY
HAVE DATA THAT CAN ASSESSMENT
RISK IN A REASONABLE MANNER.
SO I WOULD SAY THAT IF WE COULD
DUBBED WORK TOWARD USING THE
EXISTING INFRASTRUCTURE THAT
EXISTS
RATHER THAN CREATING ANOTHER
CREDIT DATABASE
WITH VERY LIMITED PERSON.
A PURPOSE AND A SIGH LOAD
PURPOSE OF KEEPING THESE PEOPLE
IN AN INVISIBLE STATE WOULD BE
BETTER OFF AND I'D LIKE TO WORK.
OUT WITH THE LEGISLATURE AND AND
AND.
WITH EACH OTHER CHAIRPERSON IN
ORDER TO.
TO SEE IF THIS MIGHT WORK.
YOU.
THANK YOU ARE VICE CHAIR CHEN
MEGADETH AND COMMITTEE MEMBERS
JOINT COMMITTEE CALIFORNIA'S
PANIC CHAMBERS OF COMMERCE.
AND WE MUST RESPECT WE OPPOSE AB
THIRTY TEN.
AS PREVIOUS WITNESSES TO HAVE A
STATE AND AS YOU ALL KNOW THIS
IS ONE OF SEVERAL BILLS. THIS
COMMITTEE HAS HEARD IN RECENT
WEEKS THAT. I SHOULD TAKE AWAY
CREDIT OPTION OPTIONS FROM HARD
WORKING A CALIFORNIANS AND SMALL
BUSINESS OWNERS.
ARM OUR ARE MEMBERS RELY ON A
VERY A VARIETY OF SHORT TERM.
CREDIT POLITICS NOT INCLUDING A
PAYDAY LOANS A WHEN THEY'RE
STRUGGLING TO MAKE ENDS MEET.
OUR BIG.
AND THE THING IS THEY FULLY
UNDERSTAND THE FEES THAT ARE
ASSOCIATED WITH.
BUT THEY DIDN'T KNOW THAT.
ARE THE FELINE A PAYDAY LOAN.
ARE IS A LOT LESS THAN TO BOUNCE
CHECKS IN EVEN LESS EXPENSIVE
AYE IF YOU'RE FACING LATE FEES
ON A VARIETY OF OF EXPENSES.
CLEANING YOUR YOUR VEHICLE
REGISTRATION READ OR WRITE AND.
ARM
SO FOR THOSE REASONS ARE OF SOME
OF THE KEY REASONS WHY THEY THEY
THEY THEY TAKE OUT THESE LOANS
OUT THERE BUT THERE ARE TIMES
WHEN THEY NEED MORE THAN THE TWO
HUNDRED FIFTY FIVE.
A.
I DOLLARS A WHETHER IT'S TO
REPLACE TIRES ON A WORK TRUCK.
BY NEW CONSUMER BUYING A NEW
REFRIGERATOR ON. YOU KNOW SOME
CONSUMERS ARE PAID ONLY ONCE A
MONTH.
AND THAT THEN THE MIGHT BECOME
SHORT BUT THEN YOU GOT.
ABLE TO PAY OFF THESE LOANS EVEN
IF YOU HAVE A TWO OF THEM ARM
AND THAT'S WHY WE NEED MORE THAN
THAN. MANY OF NEED MORE THAN ONE
KNOWN AS TIME IF THEY ARE SHORT.
ARM.
UNFORTUNATELY.
A THERE ARE NO.
GOOD LEGAL OPTIONS FOR BORROWERS
WHO NEED FIVE HUNDRED OR
THOUSAND DOLLARS HERE IN
CALIFORNIA.
WHILE PAYDAY LOANS ARE NOT
PERFECT
I THINK WE CAN ALL AGREE ON THAT
THE ARE BETTER THAN GOING TO I'M
LICENSE LENDERS OF DRIVING.
THESE CONSUMERS TO THE
UNDERGROUND ARM AND THAT'S WERE
WE SEE A LOT OF ENDLESS PROBLEMS
OUR FOR BORROWERS.
THERE ARE NO LAWS.
LIMITING HOW MANY CREDIT CARDS A
CAR LOANS AND INDIVIDUAL CAN
HAVE.
CZAR QUESTIONNAIRES Y. LIMIT
THE CREDIT OPTIONS FOR THOSE
WITH IN PERFECT CREDIT PENALIZE
THEM.
I ALSO WANT TO EXPRESS OUR
CONCERN ABOUT THE DATABASE IN
THIS BILL.
.
IT IS SHOCKING THAT IN LIGHT OF
THE HEADLINES.
ARE IN REGARDS TO PRIVACY ISSUES
BOND BETWEEN SOCIAL MEDIA DATA
BREACHES THAT WE HAVE ALL
EXPERIENCED AND MANY OF US OF
PAT HAVE BEEN HAVE HAVE
EXPERIENCE AS WELL. ARE THAT.
THIS BILL WOULD MANDATE THE
STATE TO COLLECT PERSONAL
IDENTIFYING INFORMATION
AND FINANCIAL INFORMATION ABOUT
THE VIOLENCE.
THIS MAY HAVE AND WE FEEL THIS
MAY HAVE UNINTENDED CONSEQUENCES
OF DRIVING UNDOCUMENTED THAT
RESIDENTS AND OTHERS TO THEM
UNREGULATED LETTERS VENDORS ON
THE INTERNET.
ARE THE AMOUNT OF INFORMATION
THAT LICENSE LETTERS.
WILL HAVE TO BE MET
UNDERSTUDIES BILL AB THOUGHT
THIRTY TEN ITEM IT IS SHOCKING
ARE AN ONEROUS OF FOR THESE
REASONS.
WE MUSTA ASPIRIN OVER.
THANK YOU.
ANY OTHER WITNESSES IN
OPPOSITION.
GOOD AFTERNOON JOHN CAPITA ABOUT
THE NATIONAL FEDERATION OF
INDEPENDENT BUSINESS AND
OPPOSITE.
WATCHING ON BEHALF OF THE VANCE
AMERICAN OPPOSITION.
RAINY PERRY AIR REDUCE HAS HAD
SOME HEALTH COMMITTEE CHOICE
FINANCIAL ON OPPOSITE.
PRINT MATS ON BEHALF OF MONEY
TREE IN OPPOSITION.
JABBA COVERT ON BEHALF OF CHECK
AND CASH IN OPPOSITION.
ANY OTHER WITNESSES IN
OPPOSITION.
XENON COMMITTEE MEMBERS DO WE
HAVE ANY QUESTIONS.
SOMEONE HAS ALSO FLETCHER.
AS YOU KNOW MY PERSONAL VIEW ON
CREDIT REPORTING NAY I FOUND A
LOT TO AGREE WITH.
IN THE STATEMENTS MADE AND I
THINK WE CAN CONTINUE TO WORK ON
THAT WITH ALL OF THESE BILLS
HAVE LAYS HIM AFFORDABLE HAPPY
TO MOVE THIS BILL TODAY. I JUST
THINK THAT WHAT'S MISSING WHAT
I'VE SEEN MISSING. ANYTHING EVEN
BILLS IS.
.
A REAL EFFORT.
IN MY COMMITTEE WHERE YOU HAVE A
LOT OF ZERO CREDIT SCORES.
TO ESTABLISH A CREDIT SCORE SO
PEOPLE CAN GET OUT OF THIS
MARKET COMPLETELY. UP AND SO I'M
SURE AND WE TALKED ABOUT THIS
I'M SURE WILL AS THINGS MOVE
CONTINUE TO FIGURE OUT A WAY.
I'M.
TO DO THAT AND I'M ALSO A LITTLE
CONCERNED.
AND THIS IS JUST THE NATURE OF
BILLS AS WE TALKED ABOUT IN THE
NUMBER OF BILLS THAT WE'VE MOVED
THROUGH NOW.
IS MAKING SURE THAT THERE
CONSISTENT TEN AND I'M SURE YOU.
IT A COMMITTEE STAFF HAS DONE A
GOOD JOB OF THAT BUT WE MADE A
IT IT'S A LOT ALL AT ONCE AND SO
I WANNA MAKE SURE.
WE LOOK AT THE PRINCIPLES OF
WHAT WE'RE TRYING TO DO IT I
MEAN YOU KNOW WHEN WE AGREE ON
THIS OUT SO I I ANTICIPATE THAT
YOU'LL BE SUPPORTIVE OF THOSE
EFFORTS BUT. I'D BE HAPPY TO THE
SPOT ABSOLUTELY THANK YOU.
THANK YOU DOCTOR SHARIA
QUESTION.
YEAH I DO.
AGAIN I REALIZE.
BASIC UNDERLYING INTENT OF THE
PLO NAM NOW MY ASSEMBLY MEMBER.
ANYMORE. HOWEVER THIS IS JUST
JUST A TO PROTECT CONSUMER SIDE
IT THAN NOT TO GO OVER WITH THE
ABILITY TO REPAY.
NOW HOWEVER WHAT I HEAR FROM
OUR OPPOSITION SIDE IS THAT THE.
AT THE END OF THE DAY DAISY
MAYBE DON'T WANT SO WHO MAYBE
ARE SUFFERING BECAUSE TO ME
THREE HUNDRED DOLLARS OR SO.
A IN TODAY'S STARTER IN ALL THE
IT DOESN'T GOAL OF VERY FAR. OUR
CAR REPAIR WHERE ANYTHING AUSA
ANALYST IF THEY ARE IN THAT
CATEGORY THEY NEED TO CAST RIGHT
AWAY.
SO I AM NOT.
IT EVENTUALLY.
DISPEL IT OUT MAY HURT THEM
THOUGHT MORE THAN HELPING THEM.
YEAH AND AND THE CREATING.
BLACK MARKET. AND THE WAY TO
THEY GO. ARE IN IF WELL THIS IS
A STRICTLY ENFORCED DOT THEN
ARE.
ONE IN ONE PLACE SO FIVE YOU
KNOW IF THEY NEED A FIVE ON TO
ATTEND HOA ONE THOUSAND DOLLARS
OR TWO THOUSAND DOLLARS SO WITH
THE THREE HUNDRED DAY INTO. TWO
GOAL. SO I WONDER THUS SO MY.
QUESTION MAYBE YOU CAN ADDRESS
THAT AND THE SECOND.
QUESTION THAT THE INDIANAPOLIS
IS SOME.
THAT I HAVE WELL.
HERE IS THAT THE EXAMPLES IN
TWO WEEKS CUP PAYDAY PERIOD.
LOAN AMOUNT PRINCE PRINT
PRINCIPALLY AS A THREE HUNDRED
DOLLARS. AND THE FEE PAY IS A
FORTY FIVE DOLLARS AND. UP NET
LOAN PROCEEDS OR BE TWENTY FIFTY
FIVE DOLLARS. WON'T ON JANUARY
ASSIST SIXTEEN FOR A SAMPLE
ANOTHER THREE HUNDRED DOLLARS.
CUMULATIVE. THE FEE ISN'T GOING
UP TO A NINE YEAR.
ARE LOOSE AGAIN.
ARE AND THEN FORTY FIVE DOLLARS
AGAIN HUNDRED THIRTY FIVE
ETCETERA ETCETERA. LIGHT AFTER
SEVERAL SEVERAL. WELL KNOWN SO
IT COMES OUT TO BE YEAH. IN ALL
A NEGATIVE. HOPE PROCEEDS OUT OF
WHEN THAT WHEN THAT THIS HAS
STUFF CORRECT ANALYSES SO WHAT
EACH EACH.
DE. SO FAR HAS BEEN ARE ALL
FORTY FIVE DOCTORS APPOINTMENTS
ACTS SO WHEN YOU ADD THE FORTY
FIVE THAT'S THE COMMITTED.
A FORTY FIVE PLUS FORTY FIVE IS
NINETY AND YOU AT THE FORTY FIVE
AND OTHER FORTY FIVE THAT'S A
HUNDRED AND THIRTY TIMES A
SECOND MONA WAS TIED AT THE
FORTY FIVE THOUSAND IF THEY
DREADED EVERY OF EVERY SINGLE
ONE IS FORTY FIVE. YEAH YOU
CHARGE YOU GUYS.
BUT I THINK IT IS ABOVE FLAT FEE
EACH AT EACH OF THREE HUNDRED OR
COST ME OF FORTY FIVE DOLLARS TO
BUT THE IS SECOND OWN A SECOND
TIME YOU TAUGHT ME NINETY
DOLLARS. KNOW THAT THAT'S
ACTUALLY NOT ACCURATE ASSEMBLY
MEMBER SO THE WAY THE PAYDAY
LOAN WORK FOR THOSE OF YOU THAT
MAY HAVE NOT HAD EXPERIENCE WITH
COMES IN. AND LET'S SAY THEY
WISH TO BORROW TO FIFTY FIVE
BECAUSE THAT'S USUALLY THE
MAXIMUM DOLLARS THAT THEY CAN
WALK OUT WITH THERE'S A FEE FOR
THAT. THEY WRITE A CHECK FOR
THREE HUNDRED DOLLARS WE DON'T
CHARGE ANYTHING THE DAY THEY
WALK IN. WE HAND THEM THE TWO
HUNDRED AND FIFTY FIVE DOLLARS
AND THEY AGREED TO PAY DATE OUT
TO THEIR NEXT PAYDAY LET'S SAY
IT'S IN TWO WEEKS. SO ON THE
FIFTEENTH OF THE MONTH THEY'RE
GONNA COME BACK IN AND GIVE US
THE THREE HUNDRED DOLLARS THAT'S
WHEN THEY PAY THAT FORTY FIVE
DOLLAR FEE. UP AND THEN IF THEY
WISH.
LATER THEY CAN COME BACK AND WE
BORROW AND THEN WE OF COURSE
WOULD DO THE TRANSACTION OVER.
SO WE'RE NOT CHARGING THEM
ADDITIONAL NINETY DOLLARS FOR
THREE HUNDRED ALL ALONE FOR
CHARGING THEM FORTY FIVE DOLLARS
AT THE TIME AT THE TIME THEY
REPAY THE LOAN. IF THEY WISH TO
DO IT AGAIN IT'S THE SAME
TRANSACTION IT'S EXTREMELY
SIMPLE.
SOURCES SECOND TIME WHEN YOU
GIVE ME THROWING A THOUGHTLESS
YOU'RE TAUGHT NEW YORK IMMEDIATE
TWENTY FIFTY FOUR. FIVE DOLLARS
TO THE WALK OUT
CORRECT AND AND I THINK ONE OF
THINGS WE NOT I MEAN DOLLARS NOT
NINETY DOLLARS ARE NOT CHARGING
NINETY DOLLARS THAT STATE LAW
REQUIRES THAT MAXIMUM FEE THAT
WE CAN CHARGE.
IS FIFTEEN PERCENT OF THE FACE
FIVE THE CHECK SO WHETHER YOU
COME IN ON JANUARY ONE AND
BORROW TO FIFTY FIVE THE MAX WE
CAN CHARGES FORTY FIVE DOLLARS
IF YOU RETURN ON FEBRUARY OR YOU
COME BACK IN APRIL. WE CAN ONLY
CHARGE YOU AGAIN YOU WANNA
BORROW TO FIFTY FIVE WHICH ARE
TO FORTY FIVE DOLLARS AT THE END
WHEN YOU PAY BACK THE LOAN IF
YOU DON'T PAY BACK THE LOAN YOU
KNOW YOU NEVER. ARE CHARGED
BUT OBVIOUSLY CUSTOMERS THAT
PAID BACK.
WILL.
WILL CALL IT WILL COLLECT A FEE
AT THAT TIME BUT IT IS NOT AN
ADDITIONAL. OKAY THAT EXPLAINS I
THINK THIS SHODDY SOME.
AND TO ME AND AND THAT THAT'S
RIGHT DOES SAY KIM OF IT.
LOOK YOU SEE THERE FEW MINUTE OF
IT SAYS IT.
ADDED.
SO IF YOU.
BUT THE. SECOND SECOND TIME AS
LONG AS I. IF I WERE IF I EVERY
TIME AND SO ALL OF THOSE
EVERYDAY HIRES WILL BUILD FORTY
FIVE.
MULTIPLE OF FORTY FIVE RIGHT
BECAUSE THEY'RE ADDED.
THE SONG SOUNDS LIKE ON THAT
PROCEED TO IS A NEGATIVE. YOU
KNOW SO I THINK THAT THAT IT'S A
WRONG WRONG PRISON PAGE RIGHT
HERE I THINK ONE THING THAT WE
THAT WE MAY NOT BE LOOKING AT IS
THAT THE THE COSTS A LOT OF
SOMEONE DOES COME BACK AND
REPORT YES THEY GONNA HAVE TO
PAY THE FEE AGAIN. JUST LIKE IF
YOU USE YOUR CREDIT CARD YOU'RE
GONNA HAVE TO PAY THE FEE AGAIN.
YOU KNOW IF YOU BORROW A YOU
KNOW IF YOU.
RIDING IT ALONE ON A CAR YOU
GONNA PAY A FEE THE SECOND TIME
TO GO GET ALONG ON A CAR SO IT
IS THE ONE THING I THINK THAT
WOULD BE HELPFUL THAT WE COULD
ADD TO THIS CHART WOULD BE. THE
ASSUMPTION HERE IS THAT THE
CUSTOMERS ONLY PAYING OUT MONEY.
AND THEY'RE NOT IT THERE REALLY
ISN'T ANY ANALYSIS HERE ABOUT.
WHAT ARE THEY DOING WITH THE
MONEY?
THE ASSUMPTION IS THAT FORTY
FIVE DOLLARS ASSIST LOSS THAT
YOU THAT THERE'S NOT WORST IT WE
SHOULD LOOK AT WHAT THEY'RE
DOING WITH THE PROCEEDS.
AND THEY'RE OFF SETTING
ADDITIONAL COSTS ARE CONSUMERS
ARE SMART. THEY WILL COME IN AND
BORROW MONEY IF THEY HAVE A
CHEAPER ALTERNATIVE FOR MORE
ATTRACTIVE OPTION. THEY
RECOGNIZE THAT THAT FORTY TO
FORTY FIVE DOLLAR FEE IS CHEAPER
THAN BOUNCING CHECKS.
IF YOU BOUNCE A CHECK IN THE
STATE OF CALIFORNIA WOULD SAY WE
DO WITH ONE OF THE MAJOR BANKS
WELLS FARGO CHASER P. ABATE
YOU'RE GONNA CHARGE BETWEEN
THIRTY FIVE TO THIRTY EIGHT
DOLLARS. AND THE MERCHANT YOU
BOUNCE THAT CHECK TO IS GONNA
CHARGE TWENTY FIVE DOLLARS
SO YOU'RE NORTH A FIFTY DOLLARS
ALREADY.
SO CONSUMERS KNOW THAT THAT
FORTY FIVE DOLLAR FEE IS A LOT.
A LOT LESS EXPENSIVE THAN THAT
THAT BOUNCED CHECK WERE PAYING
UTILITY LATE FEE SO THAT VALUE
OF THOSE DOLLARS ARE. ARE
ACTUALLY GOING TO REDUCE
ECONOMIC IMPACT
TO THAT CUSTOMER AND I THINK
THAT THAT SHOULD BE ADDED I
THINK THAT WOULD HELP THE KIDS
THE COMMITTEE UNDERSTAND AND
THAT'S WHAT WE TO CONTINUE WOULD
LIKE TO WORK ON THIS BEFORE THIS
BILL. GETS PASSED.
MISTER GRAYSON THANK YOU.
JUST TO CLARIFY THE CHART
DOESN'T APPEAR TO BE RIGHT.
IN YOUR REPORT BECAUSE YOU DO I
GET THE PART WHERE IT SAYS FEES
PAID CUMULATIVE.
BUT THE NET LOAN PROS.
PROCEEDS.
FOR THE GENEROUS SIXTEEN THREE
HUNDRED DOLLAR LOAN WHERE YOU
HAVE A CUMULATIVE FEE OF NINETY
DOLLARS. YOU'RE STILL GETTING
TWO HUNDRED FIFTY FIVE NASH YES.
YOU'RE NOT GETTING TO TEN.
SO THEY'RE IN A.
YES
SO IT DOES APPEAR TO BE THAT
THERE'S A FLAW HERE IN THE
CHART.
I TRIED TO A.
ESPECIALLY WHEN.
YEAH ACCENTUATE THE MESSAGE OF
TRYING TO SEND AN IN AND IF I
MAY. I DID CREATE A CHART AND SO
HARD NOT TO BE OFFENSIVE NO NO
NO.
MORE THAN ANYTHING I WANTED TO
BE INFORMATIVE SO THAT PEOPLE
UNDERSTAND SO.
I LABEL THAT LAST MET LOAN
PROCEEDS
AND SO WHEN YOU GET YOUR
ORIGINAL LOAN. EVERY TIME YOU
COME BACK AND HAVE TO RENEW THE
LONG YES ANOTHER FORTY FIVE
DOLLARS.
YOU HAVE TO PAY AN ADDITIONAL
FORTY FIVE DOLLARS AND SO WHAT I
WAS TRYING TO SHOW WAS NO NOT AN
ADDITIONAL YOU JUST PAY THE
FORTY FIVE YES YES ANY YOU. KNOW
CURRENT OTHER THREE HUNDRED
DOLLAR LOAN AT THE SAME TIME
WHICH IS WHY YOU'LL NOTICE THAT
THE LONG PRINCIPLE DOESN'T GO
DOWN. OVER THE TIME AS YOU.
AS YOU SEE QUINCE THESE LOANS
YOU STILL OWE OWN YOU STILL. OWE
THREE HUNDRED DOLLARS.
BUT YOUR NET PROCEEDS GETS
SMALLER AND SMALLER AS THE FEED
THAT YOU HAVE TO CONTINUE TO PAY
EVERY TIME YOU ROLL THE LOAN
OVER.
OKAY I I KNOW.
I'M I'M NOT SURE I AM NOT
CONVINCED THAT SOME YOU HAVE TO
HELP ME AND GET IT OUT OF THE
CHURCH.
MY APOLOGIES FOR NOT CREATING
CLEAR CHARGE.
THE WORSE.
ANY OTHER QUESTIONS FROM
COMMITTEE MEMBERS
AND I DO HAVE A QUESTION SO MY
FIRST QUESTION IS FOR IT THE
MADAM MADAM CHAIR I REALLY
APPRECIATE THE INTENT OF THIS
BILL. I THINK IS GOING TO BE.
IN YOUR TENT TO.
BUT I CONSUMERS ON HOW OVER IT
MOST OF.
SOME OF PHONE CALLS I RECEIVED.
OR LIKE WHAT THE OPPOSITION IS
AND THE CONSUMERS IN WHICH THERE
ARE ABLE TO. HAVE UNFORESEEN
EMERGENCY TAKING CARE OF UNDER
ONE LONE HAND STATE PARTAKEN
ALMOST ACTING IF YOU WILL. SO DO
YOU THINK IS GOING TO HAVE A
PERVERSE EFFECT IN TERMS OF THE
ABILITY FOR THEM TO PAY OFF.
UNFORESEEN EMERGENCIES
SO I THINK THAT HERE'S HERE
THERE ARE THREE BIG SPACES RIGHT
THAT WE'VE TALKED ABOUT A LOT IN
THE LAST COMMITTEE IN THIS
COMMITTEE. SO ONE OF THEM IS THE
THREE HUNDRED DOLLARS AND UNDER
IF YOU NEED MORE THAT YOU
ACTUALLY GO TO THE PILOT
PROGRAM.
AND THAT'S THE REAL ONE TO
TWENTY FIVE HUNDRED AND THAT IS
AT A ONE NIGHT STAND I WANT TO
CORRECT WHAT WAS SAID THAT THERE
IS NOT A LEGAL. SPACE IN PLACE
THERE IS ILLEGAL SPACE AND PLACE
THAT HAS THE ABILITY TO GO UP TO
TWENTY FIVE HUNDRED AND THEN WE
HAVE IF YOU RECALL FROM THE LAST
ONE TWENTY FIVE HUNDRED UP TO
TEN. SO WE'RE REALLY TALKING
ABOUT THREE SPACES THIS IS ONLY
ABOUT ONE SPACE SO IF YOU NEED
MORE THAN THREE HUNDRED THERE IS
AN ADDITIONAL SPACE WITH
DIFFERENT LAWS THAT THIS BILL
DOES NOT DEAL WITH THIS THAT THE
THAT THE PILOT PROGRAM. AND THAT
PEOPLE CAN GO INTO IF THE TWENTY
FIVE HUNDRED DOLLARS IS NOT
ENOUGH THEN YOU GO INTO ANOTHER
SPACE THAT GOES FROM TWENTY FIVE
TO TEN THOUSAND.
PREVENTION AND IDEAL CLASSROOMS
TO HAVE ONE SO THE OPPOSITE AS
YOU STATED THAT WITH THE CBO
THEY'RE GONNA BE IN CHARGE OF
ALL THE. ON COMPILING THE ON
MONDAY THAT DATABASE AND IT
WOULD INCLUDE A TAX ID
INFORMATION SO SECURITY
INFORMATION.
WATER THE DISADVANTAGE THAT YOU
SEE I MEAN ASSUME THAT THE CBO
WILL BE MORE THAN EQUIPPED TO
TAKE CARE OF THIS.
A STATE RUN SYSTEM.
WELL I WOULDN'T SEE THAT ALL OF
THAT INFORMATION IS NECESSARY IN
ORDER TO UNDERSTAND THE
PERFORMANCE OF THESE LONG.
I'M NOT HERE TO JUSTIFY THE
PRICING OF THE LOANS OR HOW
THEY'RE ROLLED OVER I'M JUST
HERE TO SAY THAT EVEN UNDER THIS
CHART.
.
IF ALL OF THOSE LOANS RIVER
REFLECTED ANY CONSUMERS HISTORY
A LENDER WOULD BE ABLE TO SEE
THAT HISTORY AND SEE THAT
THERE'S A RECORD OF PAYING THEM
BACK.
YOU CAN'T GO INTO A HIGHER LOAN
LIKE.
THREE DOT THREE HUNDRED TO TWO
HUNDRED TWENTY HUNDRED TWENTY
FIVE HUNDRED OR HIGHER WITHOUT A
CREDIT HISTORY.
IF YOU HAVE NO CREDIT HISTORY
THOSE LENDERS ARE NOT GOING TO
LOOK AT YOU THEY DON'T KNOW.
YOUR HISTORY AND HOW YOU'RE
GOING TO PAY BACK SO THIS WOULD
ACTUALLY.
THIS SHOULD PERFORM THE
FUNCTION OF NOT ONLY.
ASSESSING THE ISSUE OF WHETHER
OR NOT SOMEBODY RD IS STACKING
ALONE BUT ALSO THE ABILITY.
PUMP THEM UP INTO OTHER LOAN
PRODUCTS SO THAT THEY CAN
QUALIFY WE WOULDN'T NEED TO OUR
COLLECT ALL THE INFORMATION THAT
THE STATE WOULD BE TO.
COLLECT IN ORDER TO MAKE THIS
DATABASE WORK WEB MAKING THAT
WORK RIGHT NOW WITHOUT THAT IT.
SHOULD
WHAT WE NEED NOW.
IN ORDER TO MAKE THIS WORK
EFFECTIVELY AS THE AUTHORS PUT
FORWARD IS MANDATORY REPORTING.
THANK YOU ASSEMBLY ANY OTHER
QUESTIONS FROM BETWEEN NUMBERS.
SEEING NONE IS THERE A MOTION
SECOND.
OF
I CAN'T WILL MOVE MOTION THE
SERGEANT.
CAN I THE MOTIONS WELL I'VE
HAULAGE AS MADAM CHAIR.
AT YOUR PLEASURE PLEASE CLOSE
AND I JUST I I WANTED TO JUST
MAKE SURE THAT AND YOU KNOW WE
RECOGNIZE THAT THERE'S BEEN A
LOT AND. OF WORK I INITIATED IN
THIS PARTICULAR SPACE A THING TO
ASSEMBLY MEMBER GONZALEZ
FLETCHER IS COMMENTS ABOUT HOW
DO WE ALIGN AND I THINK OUR
COMMITTEE.
EASE AND YOU KNOW MYSLF WERE
VERY INTERESTED IN MAKING SURE
OF THAT THE THE BILLS THAT ARE
MOVING FORWARD ARE ALIGNED AND
THESE BILLS THIS ONE IN
PARTICULAR WILL BE HEADED TO
ASSEMBLY PRIVACY AND CONSUMER
PROTECTION IF IT GETS OUT OF
COMMITTEE TODAY. SO THEY WILL
LOOK AT THE DATA PIECE.
I THINK HAD THERE ARE ARGUMENTS
ON BOTH SIDES WITH ALL DUE
RESPECT ON WHY AN AGENCY LIKE
EXPERIENCE MIGHT BE OR MIGHT NOT
BE THE RIGHT AGENCY TO HOLD THAT
DATA. PARTICULARLY GIVEN IN
LIGHT OF EVERYTHING THAT'S
HAPPENED VERSUS THE STATE.
BECAUSE SYSTEMS ARE SYSTEMS AND
THEY'RE ALL VULNERABLE TO
DIFFERENT TYPES OF I'M.
I SAID YOU KNOW AND.
TWO DIFFERENT TYPES OF LIABILITY
SO I I JUST WANT TO BE CLEAR
THAT ADD THAT THE DATA PIECE
WILL BE DEALT WITH IF THIS BILL
MOVES OUT IN THE NEXT. COMMITTEE
AND I THINK THAT THERE IS WORK
TO DO ON MAKING SURE FEEL LIKE
THERE'S BEEN A GENERAL
CONSENSUS.
ON.
.
ON MOVING FORWARD BILLS THAT DO
REPORT AT THE CREDIT I'M
PARTICULARLY TO HELP CONSUMERS A
BILL THAT CREDIT I THINK THAT
THERE'S GENERAL CONSENSUS AND
INTERESTS AROUND THAT AS WELL.
SO WITH THAT I RESPECT THE
ASPIRIN AYE BUT WITH THE
COMMENSURATE THIS IS A DO PASSED
THROUGH PROTESTANT CONSUMER
PROTECTION.
MADAM SECRETARY PLEASE CALL THE
ROLL.
AB THIRTY TEN THIRTY PASSED
COMMITTEE ON PRIVACY AND
CONSUMER PROTECTION LAMONT I.
LIMON AYE CHEN.
CHEN NO ACOSTA NO.
COSTA NO BERMAN.
BERMAN I.
BURKE.
CALDERON.
CALDERON AYE CHOI NO CHOI NO.
GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE GRAYSON.
GRAYSON NOT VOTING.
STONE.
STONE I.
WEBER.
WEBER I.
IT'S OUT BUT YOU MANAGER.
IF
.
WE DO HAVE EXCUSE ME SORRY WE'RE
NOT QUITE DONE WITH THE HEARING
WE DO HAVE BILLS ON CALL.
AND SO FIRST I WE WILL TAKE IT.
I AB SEVENTEEN FORTY TWO.
THAT'S QUIRK SPELL.
AB SEVENTEEN FORTY TO DO PASSED
COMMITTEE ON PRIVACY AND
CONSUMER PROTECTION.
BURKE.
CALDERON.
CALDERON AYE.
GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE WEBER.
WEBER I.
NEXT WE HAVE AB TWENTY TWENTY
FIVE I BY SOME REMEMBER JONES
SAWYER.
AND ASSEMBLY BILL SEVENTEEN
FORTY TWO IS OUT WITH A.
I VOTES.
AND WHEN NO.
AB TWENTY TWENTY FIVE JONES
SAWYER.
AB TWENTY TWENTY FIVE DO PASS AS
AMENDED TO COMMITTEE ON
JUDICIARY.
ACOSTA.
BERMAN.
BERMAN I BURKE.
CALDERON.
CALDERON AYE.
GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE.
STONE.
STONE I.
WEBER.
WEBER I.
AB TWENTY EIGHT TWENTY FIVE IS
OUT TEN NO VOTE.
NEXT WE HAVE AB TWENTY NINE
EIGHTY FOUR LIMON.
AB TWENTY NINE EIGHTY FOUR TO
PASSED COMMITTEE ON
APPROPRIATIONS.
BERMAN. BERMAN AYE.
BURKE.
STONE.
STONE I.
AB TWENTY NINE EIGHTY FOUR IS
OUT WITH THE SEVEN TO VOTE.
SO AT THIS POINT AND I THINK
EVERYONE'S VOTED THAT'S HERE.
SO YEAH AB.
VOCAL.
SO I'M GONNA HOLD THIS OPEN AND
TO SEE IF ANYBODY ELSE WANTS TO
ADD ON.
THANK YOU THAT WOULD BE REALLY
REALLY HELPFUL.
SO ASSEMBLY MEMBER STONE GONNA
SIT IN.
.
NO.
I I.
AND HERE YOU KNOW WHEN YOU'RE.
NO I.
SHE'S SHE
NO IS HIS LACK OF AND I'M. NOT
PENSION MONEY OKAY SHE REACHED
WOULD HAVE.
YOU CAN ADJOURNED.
NO ADDED.
WE SHOULD HAVE GOING A BIT WHEN.
I WAS READING.
NO MONEY TO THAT YOU KNOW LET'S
MAKE SURE WE GOT EVERYBODY.
REALLY FORTY FIVE DOLLARS.
RIGHT WHAT.
YOU ARE.
YOU KNOW YEAH.
WE CAN GET PAID OFF.
RIGHT RIGHT.
ONE. TO EVERY.
SO BEHALF OF THAT CHAIR THAT
CONCLUDES THE BUSINESS OF THIS
COMMITTEE AND I'M GOING TO GO
AHEAD IN THE JURY