BANKING AND FINANCIAL
INSTITUTION INTO.
WORK WE WANT TO START OF THE
SUBCOMMITTEE BOAT WE NEED.
TO HELLO QUIET IN THE CHAMBER.
OUR RESPECTIVE TIMES MCCARTY
YOU'RE HERE SO ARE YOU READY FOR
YOUR PRESENTATION [inaudible]
ON AB.
NINE FOUR FIVE WHEN YOU'RE READY
YOU MAY BEGIN.
THANK YOU MISTER CHAIR AND I
BELIEVE THAT.
YOU'RE GONNA OUTLINE OUR AUTHORS
AMENDMENTS ARE YOU.
AT SOME POINT [inaudible]
OKAY.
SO I'M I'M HERE TO PRESENT A. B.
NINE FOUR FIVE IT'S IT'S A THE
MEASURE RELATE TO A LOCAL
AGENCIES IN OUR ABILITY TO
INVEST THEIR SURPLUS FUNDS.
IN SECURE FINANCIAL INVESTMENTS
CALLED RECIPROCAL DEPOSITS I DO
WANNA KNOW TOO THAT WE WORKING
WITH THE OPPOSITION I BELIEVE
THEY'RE GOING TO COME TESTIFIED
THAT WE HAVE REMOVED.
OPPOSITION THIS BILL IS
PERMISSIVE IT WOULDN'T REQUIRE A
LOCAL ENTITY TO DO SO BUT
PROVIDES THEM WITH AN OPTION IF
IT MAKES FINANCIAL SNSE FOR
THEM -- CURRENT LAW PLACES MANY
RESTRICTIONS ON TYPE INVESTMENT
OF SURPLUS FUNDS FROM LOCAL
AGENCIES MAY BE INVESTED IN
THOSE RESTRICTIONS INCLUDE --
MAKING SURE THE INVESTMENTS HAVE
HIGH LIQUIDITY AND DO NOT POSE A
HIGH A RISK TO THE LOCAL AGENCY --
THIS BILL DOESN'T CHANGE ANY OF
THOSE RESTRICTIONS BUT SIMPLY
INCREASES BY 20% -- THE AMOUNT
THAT AGENCIES SURPLUS MAY BE
INVESTED -- THIS REALLY WILL
HELP OUR COMMUNITY BANKS AND
FRANKLY COMMUNITY BANKS ARE
IMPORTANT TO REINVEST IN OUR
LOCAL DISTRICTS THROUGHOUT
CALIFORNIA TO HEAR FROM SOME
RIGHT HERE.
I CALIFORNIA IS THE ONLY STATE
IN THE NATION WITH WHICH HAS A
CAP ON THESE RECIPROCAL DEPOSITS.
WE UNDERSTAND THE NEED FOR
CAUTION BUT WE THINK THIS HAS
ENOUGH SAFEGUARDS IN PLACE THAT
WILL NOT PLACE.
UNDUE RISK TO LOCAL FUNDS NOR
ARE TAXPAYERS.
THESE FUNDS ARE FULLY INSURED
AND THE FDIC PROGRAMS REQUIRED
BY LAW.
AND ESSENTIALLY WILL HELP OUR
COMMUNITIES HAVE SMART
INVESTMENTS BUT ALSO GET BACK TO
THEIR COMMUNITIES WITH ME TODAY
ARE REPRESENTS FROM RIVER CITY
BANK AND FIVE STAR BANK AS WELL
AS CALIFORNIA BANKERS
ASSOCIATION.
THANK YOU [inaudible]
WITH THIS.
THANK YOU MISTER CHAIRMAN AND
MEMBERS OF THE COMMITTEE MY NAME
IS GERRY LAG I'M THE SENIOR VICE
PRESIDENT GOVERNMENT BANKING
MANAGER FIVE STAR BANK HERE IN
SACRAMENTO -- I JUST WANTED TO
POINT OUT THAT THIS BILL THE
AMENDMENT THAT IT'S DOING TO
EXISTING.
GOVERNMENT CODE.
WILL ALLOW US AS COMMUNITY
BANKERS TO RECEIVE MORE OF THE
DOLLARS FROM THOSE LOCAL
AGENCIES THAT WE WORK WITH.
AND THEN TAKE THOSE DOLLARS IN
LEND THEM BACK INTO THE
COMMUNITIES THAT THEY'RE SERVING --
WE'VE BEEN ABLE TO DO THAT
LOCALLY WITH A PROGRAM CALLED
THE RISE PROGRAM HERE IN
SACRAMENTO AND SEEN GREAT
SUCCESS IN THIS REGION.
THIS WOULD BENEFIT ALL THIS
COMMUNITY BANKS THROUGHOUT
CALIFORNIA AS WELLS THOSE
AGENCIES THAT THEY SERVE.
SO THANK YOU FOR YOUR
CONSIDERATION AND WE APPRECIATE
YOUR SUPPORT OF THIS BILL.
THANK YOU I'M I'M SECTOR WE
PLEASE SUBSEQUENT.
SENATOR BRADFORD PRESENT. FOR
HERE CHIANG YEAR CHAIN HERE
CARILLO.
I BETTER HEAR DELI.
DELI HERE BROWSER [inaudible]
WES SO [inaudible]
PORTANTINO [inaudible]
PORTANTINO HERE.
MEMBERS A QUORUM IS PRESENT OUR
NEXT WITNESS IF YOU WANT TO
CONTINUE PUSH.
THANK YOU MISTER CHAIR AND
SENATORS THANKS FOR HAVING ME I
AM ANCHOR CHRISTENSEN -- FROM
RIVER CITY BANK CFO.
WE'RE THE LARGEST COMMUNITY BANK
BASED IN SACRAMENTO.
WERE LARGE BUT WE'RE STILL VERY
SMALL WE'RE A COMMUNITY BANK --
BECAUSE OUR CUSTOMER BASE IS
LOCAL -- CONSISTS OF CONSUMERS
AND BUSINESS BUSINESSES LOCATED
IN SACRAMENTO.
PUBLIC SECTOR ENTITIES ARE
GROWING PART OF OUR CUSTOMER
BASE -- WE ADDED RECENTLY THE
CITY OF DAVIS AND TWENTY
EIGHTEEN AB NINE FORTY FIVE IS
IMPORTANT TO US AS WELL AS OUR
CLIENTS THAT ALLOW US TO ALLOW
US TO OFFER HIGHER RATES OF
INTEREST.
AND KEEP THOSE DEPOSITS.
FULLY LIQUID THEY CAN INVEST IN.
A MONEY MARKET ACCOUNTS CD'S
CETERA.
AND ALL THE MONEY IS ARMS AN
FDIC INSURED.
AS JERRY POINTED OUT WE WANT TO
BE ABLE TO LAND -- MORE MONEY
INSTEAD OF HAVING THEM TO BE
COLLATERALIZED -- BUT ONE THING
THAT'S ALSO DIFFERENT -- AS CAN
YOU BANKS IS THAT WE WE NOT ONLY
LAND BUT WE PROVIDE DONATIONS TO
OUR A LOCAL NONPROFITS.
OF THE LAST SEVERAL YEARS WE'VE
BEEN GIVING -- OVER A HALF
MILLION DOLLARS.
EACH YEAR TO OUR LOCAL
NONPROFITS IN SUPPORT OF OUR
COMMUNITIES THAT WE SERVE AND WE
RESPECT FOR YOUR SUPPORT YOUR
ACTIONS HERE.
ADDITIONAL WITNESSES IN SUPPORT
YOU CAN FORM ALIGNED AT THE
MICROPHONE THERE.
MISTER CHAIRMAN SENATORS KEVIN
GOAL TO CALIFORNIA BANKERS
ASSOCIATION WE'RE PROUD TO
SPONSOR THIS MEASURE WE
APPRECIATE THE WORK OF THE
COMMITTEE THE COMMITTEE STAFF.
AND ALL THE STAKEHOLDERS IN
ALLOWING US TO GET A CONSENSUS
WE RESPECTFULLY ASK FOR A VOTE.
THANK YOU ADDITIONAL WITNESSES
MARGARET LATCHING ON BEHALF
CALIFORNIA COMMUNITY BANKING
NETWORK ALSO IN SUPPORT THANK
THE AUTHOR FOR HIS WORK ON THIS
THANK YOU.
ROBERT WILL SO THE CALIFORNIA
CREDIT UNION LEAGUE IN SUPPORT
THANK YOU.
IN ADDITION WITNESSES IN SUPPORT.
MONTGOMERY FOR MONTEREY BAY
COMMUNITY POWER IN SUPPORT.
THANK YOU.
ALL RIGHT WITH THIS IS IN
OPPOSITION -- CAN WE PROVIDE A
SEAT.
FOR I CAN BE REALLY CRACKS OKAY
I'M CAROLING UNDER THE
CALIFORNIA ASSOCIATION OF COUNTY
CHARGES AND TAX COLLECTORS.
WITH THE AMENDMENTS THAT YOU'RE
I'M STAFF WORKED OUT WITHOUT THE
SPONSORS AND THE AUTHOR WE ARE
GOING TO REMOVE OPPOSITION AND
GO NEUTRAL OUR CONCERN HAD BEEN
THAT ARE 50% OF THE COUNTY POOL
AND LOS ANGELES IS CASE COULD BE
TWENTY SIX BILLION DOLLARS.
AND WE ARE REQUIRED TO I HAVE A
VERY DIVERSE PORTFOLIO SO WE
WERE CONCERNED ABOUT OPENING UP
THAT FLOODGATE THE PROTECTIONS
IN PLACE WITH I THINK.
ARE REALLY SOLID AND WE LOOK
FORWARD TO HEARING HOW THIS
WORKS WHEN THE SUN SIDE COMES UP
AND A COUPLE OF YEARS AND THINK
YOU CAN TEAR COMMITTEE STOCKS IS
FANTASTIC.
THANK YOU THANK YOU.
WITH THIS IN OPPOSITION OR
REMOVING THEIR OPPOSITION SEEN
NINE BRING AFFECTED COMMITTEE
ANY QUESTIONS BY COMMITTEE
MEMBERS.
BILL HAS BEEN MODE BY SENATOR
CHIANG.
YEAH I UNDERSTAND -- YES CENTER
CABALLERO.
QUESTION I JUST -- WANT TO SAY
THANK YOU TO THE AUTHOR -- FOR
FOR THIS OPPORTUNITY TO REALLY
LOOK AT SOMETHING THAT -- THAT
IMPACTS ON ALL OF OUR LOCAL
GOVERNMENTS AND TO UNDERSTAND A
LITTLE BIT BETTER I APPRECIATE
THE THE BRIEFING THAT WAS GIVEN
TO ME IT IT -- MADE A LOT
CLEARER TO UNDERSTAND -- THE
REQUIREMENT I'M I'M OBVIOUSLY MY
CONCERNS FOR LOCAL GOVERNMENT IS
THAT -- IT IS IS THAT THEY HAVE
ACCESS TO THE FUNDS IT'D BE
LIQUID AND ALSO THAT IT BE
GUARANTEED THAT IT THAT.
IF THERE ARE PROBLEMS WITH THE
BANK THAT THE THAT THE LOCAL
GOVERNMENT DOESN'T LOSE THEIR
MONEY AND SO I REALLY APPRECIATE
APPRECIATE THE WORK THAT YOU'VE
DONE ON THIS AND I FOR THAT
REASON ABOUT VOTE I TODAY
[inaudible]
GREAT.
HOW ARE YOU I JUST WANT TO THANK?
A CINNAMON MCCARTY FOR YOUR
WILLINGNESS TO WORK WITH THIS
COMMITTEE.
AS WELL AS THE OPPOSITION TO
ADDRESS.
THE CONCERNS THAT WERE RAISED I
WILL SHARE WITH WHAT THAT
UNDERSTANDING AS MISS MCCARTY AS
TO THE MOMENTS THAT YOU'RE.
WILLING TO AGREE BECAUSE WE
DON'T HAVE ONE THEY'RE NOT
REFLECTED IN ANALYSIS SO TO ALL
FURNISHED EVERYONE INVOLVED --
INTO SURE THE MEMBERS KNOW WHAT
WERE VOTING ON I'M GOING TO
CONFIRM THOSE MEMBERS HERE FIRST.
AMENDMENT DESCRIBED ON PAGE
EIGHT OF THE ANALYSIS AS NINE
EIGHT NINE BE AND NINE SEE THOSE
AMENDMENTS LIMIT THE AMOUNT OF
MONEY A LOCAL AGENCY MAY
DEPOSITED ANY SINGLE DEPOSITORY.
AND ADD SAFEGUARDS INTENDED TO
ENSURE THAT LOCAL AGENCY MONEY
PLACED.
EAST BY PLACEMENT AGENCIES IS
FULLY INSURED NUMBER.
ONE NUMBER TWO ADDITIONAL
AMENDMENTS INTENDED TO PREVENT
UNINSURED DEPOSITS IN CASES
WHERE A SINGLE SELECTIVE
DEPOSITORY INSTITUTION WORKS
WITH MORE THAN ONE PLACEMENT
AGENCY.
NUMBER THREE AND MMA CAPPING
INVESTMENT OF SURPLUS FUNDS BY
COUNTIES.
AND COUNTY POOLS AND
DEPOSITORIES THAT USE PLACEMENT
AGENCIES OUT THE 30% LEVEL IN
CURRENT LAW.
WITH THIS TO MIMIC COUNTIES AND
COUNTY POOLS WILL BE CAPPED AT
30% AND LOCAL AGENCIES THAT
DON'T USE POOLS TO MANAGE THEIR
MONEY WILL BE CAPPED AT 50%.
IN THE FOURTH IS THIS COMMITTEE
IS ALSO CROSSING AMENDMENTS
AGREED TO BY MR MCCARTY IN THE
SENATE GOVERNANCE AND FINANCE
COMMITTEE. TO SUNSET THE
INCREASE 250% ON JANUARY ONE OF
TWO THOUSAND SIX ODD THAT TO
MOCK UP IN IS THOSE THE MEMBERS
THAT YOU'VE AGREED UPON THIS
REGARD.
YES.
THANK YOU.
ALL RIGHT.
WITH THAT WE HAVE A MOTION WOULD
YOU LIKE TO CLOSE.
NOW I THINK YOU -- YOU SUMMARIZE
THIS THIS WAS.
A PROCESS OF COURSE LIKE ALL
THESE BILLS I THINK IT'S THAT.
IT'S A COMPROMISE THAT STRIKES A
BALANCE BUT ALLOWS TO FOCUS ON
THE INTENT WHICH IS PROTECTING.
AT TAXPAYERS -- PULLED ASSETS
BUT WILL ALSO LONG SOME
FLEXIBILITY TO REINVEST BACK IN
OUR LOCAL COMMUNITIES THROUGH
COMMUNITY BANKS.
ASK THE RIGHT THANK YOU THANK
YOU.
THE WE HAVE A MOTION -- DO PASS
AS AMENDED TO THE FLOOR.
MA'AM SECRETARY PLEASE CALL THE
ROLL [inaudible]
I CHIANG I THINK I CABALLERO.
CARILLO I DAILY.
DALY AYE DURAZO.
DURAZO I WEST SO [inaudible]
PORTANTINO [inaudible]
PORTANTINO I THE MOMENT MCCARTY
EUROPE MEASURES OUT WILL LEAVE
THE ROLE OPEN FOR ABSENT MEMBERS
THANK YOU.
NEXT UP ON THE FUTURE OF THE DAY
AB [inaudible]
FIVE THREE NINE HI.
SOMEONE WOMAN LEMOND AND MR GRAY
SHIRT.
GRAYSON I'M SORRY WE APPRECIATE
YOUR PRESENCE HERE.
AND WHEN YOU'RE READY YOU MAY
BEGIN.
THANK YOU CHAIR AND MEMBERS.
THE END REGULATED INTEREST RATE
ENVIRONMENT CALIFORNIA HAS LED
TO AN EXPLOSION OF HIGH COST
LOANS OVER THE PAST DECADE.
THESE LONE STAR AT TWENTY FIVE
HUNDRED AND HAVE INTEREST RATES
FROM ONE HUNDRED TO MORE THAN
2100%.
FAR TOO OFTEN CONSUMERS ARE
UNABLE TO REPAY THESE EXPENSIVE
LOANS.
THE COMMITTEE ANALYSIS STATES
THAT 30% OF THE LARGE.
OF A LARGE SAMPLE OF HIGH COST
LOAN FROM LENDERS THAT OPPOSE
THIS BILL WERE RECENT WERE SENT
TO COLLECTIONS.
IN ADDITION TO THE CONSTANT
PRESSURE FROM DEBT COLLECTORS
THIS PROCESS RESULTS IN DAMAGE
CREDIT FROM FOR THE CONSUMER AND
CAN ALSO LEAD TO THEIR PAYCHECK
BEING GARNISHED THEIR BANK
ACCOUNT BEING CLOSED.
AND THEIR CAR BEING REPOSSESSED.
MORE THAN ONE OUT OF THREE TIMES
THESE LOANS LEAVE PEOPLE WORSE
OFF THAN WHEN THEY STARTED.
I CANNOT THINK OF ANOTHER
PRODUCT THAT FEELS SO OFTEN
WITHOUT GOVERNMENT STEPPING IN
TO INTERVENE.
HI COST LENDERS WHO OPPOSE THIS
BILL SAY THAT THEY NEED TO CHOP
CHARGE SUCH HIGH RATES TO MAKE
UP FOR THE CONSUMERS WHO DEFAULT.
HOWEVER HOW HIGH INTEREST RATES
PLAY A CRITICAL ROLE IN MAKING
THESE LOANS AND AFFORDABLE IN
THE FIRST PLACE.
LET'S WALK THROUGH A COMPARISON.
TAKE FOR EXAMPLE A TWO YEAR
TWENTY SIX HUNDRED DOLLAR LOAN
WHICH IS FAIRLY CALL IT WHICH IS
A FAIRLY COMMON PRODUCT IN THE
MARKET.
IF THE CONSUMER GET THIS LOAN
FROM A LENDER CHARGING 36% THEIR
MONTHLY.
PAYMENT WOULD BE ABOUT A HUNDRED
AND FIFTY DOLLARS AND THEY WOULD
PAY BACK A TOTAL OF THIRTY SEVEN
HUNDRED DOLLARS OVER THE LIFE OF
THE LOAN.
ON THE OTHER HAND IF A CONSUMER
GETS THIS LOAN FROM A HIGH COST
PROVIDER THEIR MONTHLY PAYMENT
WOULD JUMP TO FOUR HUNDRED AND
FIFTEEN DOLLARS AND THEY WOULD
PAY BACK A TOTAL OF NEARLY
ELEVEN THOUSAND DOLLARS.
ON THAT TWENTY SIX HUNDRED
DOLLAR LOAN.
THE OUTCOMES OF THIS UNREGULATED
SPACE ARE CLEAR.
THE HIGH INTEREST RATES ALLOW
LENDERS REMAIN SUSTAINABLY
PROFITABLE EVEN WHEN ONE THIRD
OR MORE OF THEIR BARS ULTIMATELY
DEFAULT ON THE LOAN.
AB FIVE THIRTY NINE WILL PUT A
STOP TO THIS REGION INCENTIVE
STRUCTURE.
THE IDEA THAT CONSUMERS WILL NOT
HAVE CREDIT OPTION IF THIS BILL
PASSES IS NOT REALISTIC THE
LENDERS TO SUPPORT THIS BILL
HAVE FOUND WAYS TO OFFER
AFFORDABLE CREDIT OPTIONS TO
BARS WITH DAMAGE CREDIT OR EVEN
NO CREDIT SCORE AT ALL.
AND LET'S BE CLEAR CALIFORNIA IS
AN OUTLINE HERE WE ARE AMONG A
SMALL MINORITY OF STATES THAT DO
NOT CAP INTEREST RATES ON THESE
LOANS. THIRTY EIGHT OTHER STATES
HAVE INTEREST RATE CAPS SIMILAR
TO OR LOWER THAN WHAT THIS BILL
PROPOSES.
I HAVE WORKED HARD TO FIND A
COMPROMISE THAT WOULD EARN THE
SUPPORT FROM BOTH CONSUMER
GROUPS AND LENDERS ALIKE AND AB
FIVE THIRTY NINE IS A RESULT OF
THOSE NEGOTIATIONS.
WE HAVE A STRONG AND BROAD
COALITION OF LOCAL GOVERNMENT
LABOR ORGANIZATIONS RELIGIOUS
ORGANIZATIONS AND VETERANS
GROUPS TO SUPPORT THIS EFFORT.
I WILL NOW TURN MY TIME OVER TO
MY JOIN AUTHOR MISTER TIM
GRAYSON WHO HAS BEEN A VALUABLE
PARTNER WITH ME IN THESE EFFORTS.
THANK YOU MISTER CHAIR SENATORS
AND ALSO TO MY COLLEAGUE IN
JOINT AUTHOR MISLIM ON FOR THREE
YEARS I HAVE SERVED ON THE
ASSEMBLY BANKING AND FINANCE
COMMITTEE.
AND LIKE MANY OF YOU I HAVE SEEN
THAT THE CURRENT SMALL DOLLAR
MARKETPLACE IS BROKEN AND THAT
TOO MANY PEOPLE HAVE TAKEN OUT
LOANS THAT ARE DESIGNED TO FAIL.
HOWEVER I HAVE ALSO BEEN WARY OF
UNINTENDED CONSEQUENCES OF
PREVIOUS LEGISLATION.
I'VE STRUGGLED WITH BALANCING
THE CLEAR NEEDS OF SUB PRIME
BORROWERS TO ACCESS CAPITAL
WHILE ALSO ENSURING THAT
PRODUCTS IN THE MARKETPLACE ARE
FAIR AND DO NOT TAKE ADVANTAGE
OF THE ECONOMICALLY DISTRESSED.
WHERE IS THE RIGHT BALANCE HOW
DO WE ENSURE CONSUMERS ARE
PROTECTED HOW DO WE ENSURE THAT
MARKETS CAN FUNCTION?
THESE ARE NOT EASY QUESTIONS AND
THEY HAVE NO EASY ANSWERS THAT
BEING SAID WE MUST RECOGNIZE THE
OPPORTUNITY THAT AB FIVE THIRTY
NINE PRESENTS US TODAY. FOR THE
VERY FIRST TIME WE HAVE THE
OPPORTUNITY TO PASS A BILL OUT
OF THE SENATE AND IS SUPPORTED
BY LENDERS CONSUMER GROUPS.
FAITH LEADERS LABOR
ORGANIZATIONS LOCAL GOVERNMENTS
AND A BIPARTISAN COALITION OF
LEGISLATORS WE ESPECIALLY MY
COLLEAGUE IN A GREAT TEAM HAVE
SPENT THE LAST NINE MONTHS
WORKING WITH ALL STAKEHOLDERS
ACROSS.
THE ISSUE TO CRAFT A BALANCED
PIECE OF LEGISLATION.
WE ALL KNOW THERE IS STILL
OPPOSITION.
THEY WILL TALK TO YOU ABOUT
ACCESS TO CAPITAL ANCILLARY
PRODUCTS I HEAR THEIR ARGUMENTS.
I JUST RECEIVED AS WELL I JUST
RESPECTFULLY DISAGREE.
THE ANALYSIS BEFORE YOU POINTS
OUT THAT NEARLY 40% OF TRIPLE
DIGIT LOANS END IN COLLECTIONS.
LET ME REPEAT THAT ALMOST 40% OF
LOANS AND IN COLLECTIONS THAT
40%.
OR TRIPLE DIGIT LOANS REALLY
GIVING PEOPLE ACCESS TO CREDIT
OR THEY JUST GIVING DEBT
COLLECTORS ACCESS TO PEOPLE.
OPPOSITION WILL ALSO TELL YOU
THAT THEY ARE THE ONLY LENDERS
SERVING THE SUBPRIME MARKET.
THIS HAS CONCERNED ME FOR A LONG
TIME TO HOWEVER YESTERDAY WE
SENT YOUR OFFICES DATA SHOWING
THAT LENDERS SUPPORTING THIS
BILL.
ARE MAKING LOANS TO THE SAME
COMPS CUSTOMERS AND CONSUMERS
BEING SERVICED TRIPLE DIGIT
LENDERS -- BY DROUGHT TRIPLE
DIGIT LENDERS SEC FINANCIAL
DISCLOSURES SHOW THAT THIS IS
TRUE FOR EXAMPLE ONE WONDER IN
OUR SUPPORT COALITION MAKES 40%
OF THEIR LOAN SPREAD BETWEEN
THREE HUNDRED AND FIVE HUNDRED
NINETY NINE FIGHT BECAUSE SCORES.
IT IS SIMPLY AN ACTOR TO ARGUE
THAT IF THIS BILL GOES INTO
EFFECT NOBODY WILL BE LEFT TO
SERVICE THE SUBPRIME MARKET.
OPPOSITION WILL ALSO TALKED
ABOUT ANCILLARY PRODUCTS.
THEY WILL POINT TO EXAMPLES OF
LOANS AND OTHER STATES TO
EXPLAIN WHY ANCILLARY PRODUCTS
HIDE THE TRUE COST OF THE LOAN.
AND OUR STATE WE KNOW THIS IS
NOT THE CASE THESE PRODUCTS ARE
HIGHLY REGULATED AND ADD JUST
SMALL AMOUNTS TO THE TOTAL COST
OF LOANS.
ANYWHERE BETWEEN ONE TO TEN
DOLLARS A MONTH.
COMPARED TO THE HUNDREDS OF
DOLLARS IN INTEREST TOMORROW
WILL PAY ON A TRIPLE DIGIT LOAN
WE ARE REALLY -- COMPARING
APPLES TO BOWLING BALLS THAT'S
NOT APPLES TO ORANGES.
APPLES TO BOWLING BALLS AGAIN I
DO NOT WANT TO UNDERESTIMATE THE
CHALLENGE OF THE POLICY CHOICE
THAT IS BEFORE YOU TODAY.
BUT I WANT TO BUY DO WANT TO
UNDERSCORE THAT THIS LEGISLATION
PROVIDES THE BEST OPPORTUNITY IN
YEARS TO BRING FAIR THIS INTO
THE SMALL DOLLAR LENDING
MARKETPLACE.
SINCE THE INTRODUCTION OF AB
FIVE THIRTY NINE I'VE SPENT TIME
AROUND MY DISTRICT TALKING TO
CONSTITUENTS ABOUT SMALL DOLLAR
INTEREST RATES.
WITHOUT FAIL THEY ARE SHOCKED TO
THE WE HAVE ALLOWED THE CURRENT
MARKET PLACE TO PERSIST.
I'VE HEARD COUNTLESS STORIES OF
ECONOMIC RUIN AND WITHOUT FAIL
THE STORIES OR FROM THE MOST
ECONOMICALLY DISADVANTAGED AND
THE PEOPLE MOST IN NEED OF
THOUGHTFUL REGULATIONS.
THIS BILL IS THAT THOUGHTFUL
REGULATION I THANK YOU AND I ASK
FOR YOUR SUPPORT -- THANK YOU
FOR YOUR TESTIMONY ODD TO HAVE
WITNESSES IN SUPPORT HERE
[inaudible]
YES.
THANK YOU MISTER CHAIRMAN
BAFFERT AND MEMBERS OF THE
COMMITTEE MY NAME IS STAR SEE
FROM THE JUNIOR AND I'M THE
SPECIAL ASSISTANT TO THE
PRESIDENT AND CEO OF THE GREATER
SACRAMENTO -- MAINLY.
THE URBAN HAS BEEN SERVING THIS
COMMITTEE FOR MORE THAN FIFTY
YEARS AND THE SO WHY MORE IN A
HUNDRED YEARS.
OUR MISSION IS TO PROVIDE
ECONOMIC SELF RELIANCE FOR
AFRICAN AMERICANS AND PEOPLE IN
UNDERSERVED COMMUNITIES
[inaudible]
PREDATORY.
LANDING HURTS OUR COMMUNITY AND
IT'S AGAINST OUR PRINCIPLES AND
MISSION OF THE GREATER
SACRAMENTO AND AND THE NATIONAL.
EARLY.
AND THAT IS WHY I'M HERE TODAY
TO VOICE OUR STRONG SUPPORT FOR
EIGHTY FIVE THIRTY NINE WE JOIN
MORE THAN A HUNDRED STATE
COMMUNITY INFECTION OF
ORGANIZATIONS LABOR CITIES
COUNTIES AND LENDERS.
AND SUPPORT OF THIS.
HISTORIC BILL.
HEY TORY LOANS WHICH EIGHTY FIVE
THREE NINE WOULD HELP TO PUT AN
END TO YOU ARE TARGETING AFRICAN
AMERICANS AND LATINOS.
AND OUR STORE IN OURS STRIPPING
THE WEALTH FROM OUR COMMUNITIES.
THESE PRODUCTS ARE ACTS ARE
BEATING IN ALREADY SEVERE RACIAL
WEALTH GAP THAT MY ORGANIZATION
AND OTHER SUPPORTERS OF THIS
BILL ARE WORKING TO CLOSE.
THESE ONE STOP SHOPS FOR PAYDAY
CAR TITLE AND HIGH COSTS
INSTALLMENT LOANS TEN OPEN
STORAGE IN LOCATIONS WHERE
HIGHER CONCENTRATIONS OF AFRICAN
AMERICAN AND LATINO FAMILIES.
THE DIFFERENT SHOWS UP EVEN WHEN
RESEARCHERS FACTORED IN INCOME
MEETING THAT THERE ARE MORE PAY
THE STORES IN HIGH INCOME
AFRICAN AMERICAN AND LATINO
NEIGHBORHOODS.
THEM POOR WHITE NEIGHBORHOODS
THEY ARE DELIBERATELY TARGETING
BLACK AND BROWN.
FAMILIES IN ADDITION. TO THIS
COFFEE SHOP STORES IN OUR
NEIGHBORHOOD PET TORY BENDERS
ARE SPINNING TENS OF THOUSANDS
OF DOLLARS ON MARKETING THROUGH
THE RADIO ADS ON HIP HOP.
RADIO STATIONS TV ADS ON SPANISH
LANGUAGE CHANNELS AND DIRECT
PHONE CALLS AND MAIL TO MEMBERS
OF OUR COMMUNITIES.
DESPITE ADVANCES IN EDUCATION
AND EMPLOYMENT OPPORTUNITIES FOR
AFRICAN AMERICANS AND LATINOS
OVER THE YEARS THE WEALTH GAP
BETWEEN AFRICAN AMERICANS AND
LATINOS HOUSEHOLDS AND WHITE
HOUSEHOLD HAS PERSISTED.
WHILE THE NETWORK OF WHITE.
HOUSEHOLD IS AROUND A HUNDRED
AND FORTY TWO THOUSAND AND FOR
AFRICAN AMERICANS IS AROUND.
ELEVEN THOUSAND AND FOR
HISPANICS IT IS UNDER.
FOURTEEN THOUSAND EDITORIAL.
THEN THE MAKES IT WORSE CAR
TITLE LENDERS ALONE TRAINED
NEARLY TWO HUNDRED FORTY MILLION
FEES PER YEAR FROM CALIFORNIA.
RESIDENTS CONSUMER LOANS THEY
CARRY AN APR OF A 100% OR 2100%
ARE NOT HELPFUL THEY ARE A TRAP
IT IS FOR THOSE REASONS THAT WE
SEND STRONG.
SUPPORT EIGHTY FIVE THIRTY NINE
THE URGE YOU TO STAND UP FOR OUR
COMMUNITIES AND VOTE YES ON AB.
FIVE THIRTY NINE THE QUICKNESS
THANK YOU MISTER CHAIR AND
MEMBERS OF THE COMMITTEE I'M AS
WERE GARRET WITH OPPORTUNE
MISSION DRIVEN CALIFORNIA LENDER
WITH OVER A HUNDRED AND EIGHTY
STOREFRONT LOCATIONS IN NINE
HUNDRED EMPLOYEES ACROSS THE
STATE.
OPPORTUNISTS CERTIFIED BY US
TREASURIES A COMMUNITY
DEVELOPMENT FINANCIAL
INSTITUTION OR SEDIA FIVE
BECAUSE OF OUR MISSION WHICH IS
FOCUSED ON PROVIDING RESPONSIBLE
IN AFFORDABLE ACCESS. TO CREDIT
FOR LOW TO MODERATE INCOME
INDIVIDUALS WHO ARE
TRADITIONALLY SHUT OUT OF THE
MAINSTREAM FINANCIAL SYSTEM.
BECAUSE THEY DON'T HAVE A CREDIT
SCORE OR A MISS SCORED BY THE
TRADITIONAL BUREAUS.
NO ONE SERVES A HIGHER RISK
BORROWERS AN OPPORTUNE.
AND SO FAR WE SERVED OVER ONE
MILLION CALIFORNIA CONSUMERS.
SAVING THEM NEARLY ONE BILLION
DOLLARS IN INTEREST IN FEES
COMPARED TO PRODUCTS TYPICALLY
AVAILABLE TO THEM. 90% OF ALL
THE CUSTOMERS WE SERVE LIVE IN
LOW TO MODERATE INCOME
COMMUNITIES AND WE'VE HELPED
OVER HALF A MILLION CALIFORNIANS
ESTABLISH THEIR FIRST CREDIT
SCORE.
OUR EXPERIENCES SERVING THIS
COMMUNITY IS A REASON WE FEEL
COMPELLED TO SUPPORT THE FAIR
CREDIT ACT.
AB FIVE THIRTY NINE BUT WE'RE
JUST ONE OF MANY MANY LENDERS
WHO STAND IN SUPPORT OF THIS
BILL.
COLLECTIVELY THE LENDERS IN
SUPPORT OF THIS BILL OPERATE
SEVERAL HUNDRED LOCATIONS ACROSS
THE STATE.
AND COLLECTIVELY WE SERVE
SEVERAL HUNDRED THOUSAND
CALIFORNIA CONSUMERS EVERY YEAR
WHO ARE DEEMED TO BE TOO RISKY
TO BE SERVED BY TRADITIONAL
PROVIDERS.
BECAUSE THEY HAVE SUBPRIME OR
DEEP SUBPRIME CREDIT SCORES.
SPEAKING PROPERTY AND I CAN TELL
YOU THAT HAPPENED WERE FIRST
TIME CUSTOMERS CAME TO US
WITHOUT OF BY CO SCORED ALL.
AND THE AVERAGE CREDIT SCORE FOR
THE FIRST TIME BORROWERS WHO DO
HAVE A SCORE IS SIX SO.
EIGHT WITHIN THE MANY LENDERS IN
SUPPORT OF THIS BILL YOU'LL FIND
A DIVERSITY OF BUSINESS MODELS.
BUT WE ALL AGREE ON THE
FOLLOWING PRINCIPLE.
RIGOROUS UNDERWRITING FOR EVERY
LOAN IN A DILIGENT APPROACH TO
ASSESSING EVERY BORROWER'S
ABILITY TO REPAY IS FUNDAMENTAL
TO RESPONSIBLE LENDING.
THE COMPROMISE PRICING FRAMEWORK
IN THIS MEASURE WAS VIGOROUSLY
NEGOTIATED OVER SEVERAL YEARS.
AND WE BELIEVE IT STRIKES THE
OPTIMAL BALANCE FOR ENABLING
BOTH EXPANSIVE CREDIT ACCESS FOR
CONSUMERS AND A FAIR RETURN FOR
LENDERS.
ACCORDING TO THE CBO.
IN TWENTY SEVENTEEN OVER A
HUNDRED AND FIFTY DIFFERENT
LENDERS MADE LOANS IN CALIFORNIA
THAT I SHOULD CONFORM TO THE
PRICING FRAMEWORK PROPOSED IN
THIS BILL.
COLLECTIVELY THE LENDERS IN OUR
COALITION SERVE MOST OF THE
FIFTY STATES ACROSS THE UNITED
STATES THAT OFFER THE FINAL
THOUGHTS FROM THE NATIONAL
PERSPECTIVE IN CLOSING.
AS MMHM I MISS THE MOST STATED
CALIFORNIA IS A NOTICEABLE OUT
LIAR HERE AS THIRTY EIGHT OTHER
STATES HAVE RATE CAPS IN PLACE
FOR LOANS IN THIS RANGE.
AND SECOND IF IMPLEMENTED THE
RATE CAP PROPOSED IN AB FIVE
THIRTY NINE WOULD BE ONE OF THE
MOST FLEXIBLE IN THE U. S..
AND IS ABOVE THE MEDIAN RATE
CAPS WHICH IS 25%.
AND LASTLY WE BELIEVE THAT THIS
BILL I PASSED IT WILL ACTUALLY
STABILIZE THE CALIFORNIA LANDING
MARKET.
AND ATTRACT OTHER RESPONSIBLE
LENDERS WHO WERE WARY OF
ENTERING HERE BECAUSE OF THE
UNSETTLED UNCONSCIONABLE THE
STANDARD WE BELIEVE IT COULD
ACTUALLY LEAD TO MORE CONSUMER
CHOICE FOR CALIFORNIANS.
SO WHAT THAT WE RESPECTFULLY ASK
YOUR VOTE IN FAVOR OF AB FIVE
THIRTY NINE AND WE'RE HAPPY TO
ANSWER ANY QUESTIONS YOU MAY
HAVE THANK YOU.
THANK YOU FOR THIS.
COMING WITH THE LA COUNTY BOARD
OF SUPERVISORS WERE A PROUD
SPONSR OF AB BY. THIRTY NINE
ONE TO THINK ASSEMBLY MEMBERS
LAMOTTA GRAYSON FOR BRINGING
THIS BILL FORWARD BUT ALSO THE
COMMITTEE TODAY AS WELL AS A
CONSULTANT FOR THEIR HARD WORK
ON THIS BILL.
THANK YOU ACTUALLY THIS.
GOOD AFTERNOON MY NAME IS LAUREN
MONTH TO SEE HERE I WAS BORN AND
RAISED IN SAN FRANCISCO I AM A
SINGLE GRANDPARENT OF TWO
TEENAGERS AND I SUPPORT THIS
BILL.
I FOUND MYSELF IN NEED OF A
THOUSAND DOLLARS AT ONE POINT IN
MY LIFE AND I WAS PUSHED INTO A
LOAN OF TWO THOUSAND FIVE
HUNDRED AND ONE CENT.
WHICH EVENTUALLY DEVASTATED MY
LIFE AND I HAD TO FILE
BANKRUPTCY I WOULD NEVER DO THIS
AGAIN THANK YOU THANK YOU --
MAMA CON.
ARE JUST SO RIVER REPRESENTING
THE FAITH LEADERS COALITION --
MEREKA MOVES AND STRATEGIES
MUSLIMS AND JEWISH COALITION --
THIS IS THIS IS THIS FLAT OUT
CRIMINAL.
YOU JUST HEARD TESTIMONY OF A
LADY WHO'S WHO'S VICTIM OF IT
BAIT AND SWITCH IS HORRIBLE.
AND I JUST WANNA REMIND THIS
COMMITTEE YOU REPRESENT THE
STATE.
THE AVERAGE AMERICAN IS FOUR
FIVE PAYCHECKS AWAY FROM PVERTY.
THIS KEEPS PEOPLE IN POVERTY I'M
I'M AN HERE WERE TO A CALL FROM.
THE ACTOR RICHARD GRANT A GRAD
WHO WANTED TO BE HERE THE
PREDATOR THE PREDATORY LENDING
DESTROYS FAMILIES IN OUR
COMMUNITY.
AND NEVER ENDS A CYCLE OF
POVERTY AND ALONE AND WITH THE
CALL FROM MUHAMMAD ALI NO WE WE
WE'RE GONNA IN WITH THAT QUOTE
RIGHT OKAY THANK YOU.
MISTER CHAIRMAN MURS MICHAEL
PIMENTEL HERE ON BEHALF OF THE
COUNTY -- SELANNE COUNTY BOARD
OF SUPERVISORS WELL AS THE CITY
AND COUNTY OF SAN FRANCISCO IN
SUPPORT US FRANK YOU.
MICHAEL RIGHT AGAIN ON BEHALF OF
THE BOARD OF SUPERVISORS SANTA
CLARA COUNTY IN SUPPORT THANK
YOU.
RENEE BAYARDO SEIU CALIFORNIANS
SUPPORT THANK YOU.
CHRIS FOR SIGNS OF TROUBLE THE
CALL THIS REMAIN IMMIGRANT
RIGHTS AS IN STRONG SUPPORT
THANK YOU.
I EVAN MENTEN WITH VOICES FOR
PROGRESS I REPRESENT HUNDREDS OF
ADD BUSINESS LEADERS WHO ARE THE
1% IN SOCIETY WHO ADVOCATE FOR
THE 99%.
THEY SUPPORT THIS BILL BECAUSE
IT'S GOOD FOR THE ECONOMY THANK
YOU THANK YOU.
JESSICA CENTER OF HAVE EQUAL
RIGHTS ADVOCATES AND THE
STRONGER CALIFORNIA ADVOCATES
NETWORK IN STRONG SUPPORT.
MISTER MEMBER SCOTT GOVERNOR
CALIFORNIA FINANCIAL SERVICES
ASSOCIATION SUPPORT.
JOANNA CORTES HADN'T DONE THIS
WITH MISSION ASSET PLAN IN
SUPPORT THANK YOU.
JAOB YOU MAY WITH CITY AND
COUNTY OF SAN FRANCISCO IN THE
SAN FRANCISCO OFFICE FINANCIAL
POWERMAN IN SUPPORT.
THANK YOU.
THE CHAIR MEMBERS GREG HAYES ON
BEHALF OF THE CALIFORNIA
ASSOCIATION OF VETERANS SERVICE
AGENCIES IN SUPPORT THANK YOU.
THIS RETURN COMMITTEE MEMBERS
PADS ANGELA HERE ON BEHALF OF
ONE MAIN FINANCIAL IN SUPPORT OF
THE BILL.
MR CHAIRMAN MEMBERS GOT WHICH
ABOUT THE STATE ASSOCIATION OF
ELECTRICAL WORKERS THE
CALIFORNIA CITY PATRONS COUNCIL
THE WESTERN STATIONS OF SHEET
METAL WORKERS THE CALIFORNIA
COALITION OF UTILITY EMPLOYEES.
AND ELEVATOR CONSTRUCTORS UNION
SUPPORT THANK YOU.
THANK YOU MR CHAIRMAN MEMBERS
WERE TALKING TO HAVE THE CITY OF
SAN DIEGO IN SUPPORT THANK YOU.
BRIAN FLANAGAN ON BEHALF OF ONE
MARK FINANCIAL SERVICES AND
SUPPORT [inaudible]
THANK YOU.
TELL TRACK NUMBER HAVE A
CONSUMER ATTORNEY'S CALIFORNIANS
SUPPORT.
JERRY BENDER ON BEHALF OF
CALIFORNIANS FOR ECONOMIC
JUSTICE COALITION IN SUPPORT.
ONLY SEE LUIS ON BEHALF OF ANY
THOSE US FORM OF THE NATIONAL
COUNCIL BUT ASA THE COUNTRY'S
LARGEST LATINO CIVIL RIGHTS
ORGANIZATION.
THANK YOU.
CAN SPACE WE HAVE INACTION
CALIFORNIA SUPPORT.
CAN MORE ON BEHALF OF U. D. W.
IN SUPPORT.
ANTHONY LEE ON BEHALF OF
ATTORNEY GENERAL HAVING OF THIS
ERA WERE IN SUPPORT AND WE
COMMEND THE AUTHORS FOR THEIR
LEADERSHIP ON THIS THANK YOU.
GOOD AFTERNOON OSCAR GONZALEZ ON
BEHALF OF OUT OF FINANCIAL AND
OUR THREE HUNDRED FIFTY THOUSAND
ACTIVE CUSTOMERS WERE IN SUPPORT.
EMILY RUSCH ON BEHALF OF CALPERS
IN STRONG SUPPORT.
ROSE MERRY CHAIN HIM PRESERVE
CONSUMERS FOR AUTO RELIABILITY
SAFETY WE LOVE THIS BILL WE
APPRECIATE YOUR SUPPORT THANK
YOU.
JESSICA BARTOLOME HALF OF THE
WESTERN CENTER ON LAW AND
POVERTY IN A CALIFORNIA ACID ON
THE COALITION IN SUPPORT.
THANK YOU.
PRISCILLA SANCHES OLIVER IS FROM
THE DOLLARS FOR THE FOUNDATION
WE'RE IN SUPPORT.
STEVEN WEBER CALIFORNIA ASKS ME
IN SUPPORT THANK YOU.
ANY ADDITIONAL WITNESSES IN
SUPPORT SCENE NINE HI I'M GONNA
MOVE NOW TO WHAT THIS IS IN
OPPOSITION WILL HAVE. TWO
PRIMARY AT THE TABLE AND IF YOU
WANT TO COME FORTH OR ARE THERE
NO WITNESSES IN OPPOSITION.
WE'RE GONNA COME UP FRONT PLEASE.
IF I MAY AND IF I MAY INTRODUCE
OUR OPPOSITION CHAIRMAN BRADFORD --
GOOD AFTERNOON CHAIRMAN BRADFORD
MEMBERS OF THE BANKING COMMITTEE.
I WOULD LIKE TO YIELD MOST OF MY
TIME -- TO TO OF OUR CUSTOMERS
TO SHARE THEIR PERSONAL
EXPERIENCES THE AMOROUS ALAN
MARIA BELLO SUMMER SO COULD YOU
PLEASE START.
THANK YOU FOR HEARING FROM ME
TODAY -- MY NAME IS FIRST ALLEN
I LIVE IN RANCHO CORDOVA -- I
HAVE OVER TEN YEARS OF
EXPERIENCE AS A SERVICE I'M
CURRENTLY EMPLOYED.
AS A PRO SERVICE ASSOCIATED WITH
THE DIVISION OF ADULT PRO
OPERATIONS -- I CAME INTO A
SITUATION WHERE I NEEDED -- TO
GET ALONE IT WAS A FRIDAY THE
POWER STEERING WENT OUT ON MY
VEHICLE -- I WASN'T ABLE TO GET
APPROVED FOR A TRADITIONAL LOAN
THROUGH -- MY BANKING
INSTITUTION I APPLIED -- TO THE
LOWER INTEREST RATE COMPANIES --
I WAS DENIED -- BY UPON WHICH I
HAVE A COPY THAT'S MY LITTLE I
WAS ALSO DENIED BY ONE MAIN -- I
TAKE THAT BACK I WAS APPROVED
BECAUSE I WAS EXCITED BUT THEN I
GOT A SECOND LETTER SAYING THAT
IT WAS CONDITIONAL UPON A CAR
TITLE LOAN -- WHICH I DIDN'T
HAVE A VEHICLE TO PROVIDE AT
THAT TIME AND I JUST THOUGHT
THAT THAT WAS.
VERY MISLEADING -- AND FORTUNATE.
BECAUSE VERY EXCITED WHEN I DID
GET APPROVED -- FOR AN ALL AN
INSTALLMENT LOAN.
IT WAS ADDED INCREASE RATE -- I
DID REVIEW THE TERMS I LOOKED AT
THE INTEREST RATE -- I WAS
COMFORTABLE TAKING IT OUT
BECAUSE I HAD NO INTENTION OF
CARRYING TO TERM -- I HAVE AN
EXCELLENT INCOME -- AND I KNEW I
WAS GOING TO BE ABLE TO PAY IT
OFF IN THREE TO FOUR MONTHS
WHICH I DID TWICE -- AT THE TIME
I DON'T KNOW WHAT I WAS GONNA DO
I DON'T HAVE A VEHICLE TO GET TO
WORK -- I'M A SINGLE PARENT I
NEED TO PROVIDE FOR MY CHILDREN.
BE ABLE TO APPLY FOR A LOAN ON A
FRIDAY HOW THE MONEY ON SATURDAY --
AND THEN HAVE A VEHICLE TO GET
TO WORK ON MONDAY ALLOWED ME TO
CONTINUE TO PROVIDE FOR MY
FAMILY -- I THINK IT'S IMPORTANT
NO YOU KNOW I HAVE A DECENT
CREDIT SCORE I HAVE A STEADY JOB
WITH EXCELLENT INCOME -- M
COUNTER ALWAYS PAID ON TIME
EVERY TIME THERE ARE GOOD
STANDING -- I'VE HAD OTHER
INSTALLMENT LOANS THAT I PAID
OFF EARLY.
AND I STILL DIDN'T QUALIFY FOR
SOME OF THESE TRADITIONAL LOANS --
OR NONTRADITIONAL -- AND ONE
MANSELL TONIGHT ME -- I JUST
WANT TO REITERATE THAT PUTTING
AN INTEREST CAP ON THE
INSTALLMENT LOANS.
IT DOESN'T ADDRESS THE NEED FOR
CREDIT FOR THE CONSUMERS
UTILIZING THE SERVICE -- I AM A
PRIME EXAMPLE THERE'S NO REASON
WHY I SHOULD HAVE QUALIFIED AND
THERE'S NOTHING THAT I COULD
HAVE DONE IN TERMS OF MANAGING
MY COUNTS BETTER FOR THAT'S FOR
TO BE -- HIGHER AND TO BE
ACCEPTED -- OR ISSUED A LOAN FOR
OTHER -- AND IF THIS BILL PASSES.
CONSTITUENTS THE LIKE MYSELF --
WILL BE FORCED TO SEEK OUT
UNREGULATED LENDERS WITH NO
CONSUMER PROTECTION -- AND I
THINK THAT'S AN EVEN BIGGER
ISSUE BECAUSE RIGHT NOW ALTHOUGH
THE INTEREST RATES ARE HIGH --
THEY ARE GOVERNED BY DVL SO
THERE RE CONSUMER PROTECTION TO
HAVE SOMEONE THAT I CAN COUGH I
HAVEN'T YOU KNOW COMPLETE -- SO
I WOULD JUST LIKE YOU.
TO CONSIDER THESE THINGS AND
MAKING A DECISION -- AND VOTE NO
ON THIS BILL.
NEXT WITNESS PLEASE.
MY NAME IS MARIA BELLO -- I AM
ALSO A RESIDENT OF THE FRENCH
CORDOVA LAST AUGUST I WAS GIVEN
A JOB OFFER WHERE -- CAN HAVE
LIKE BETTER BENEFITS AND STUFF
LIKE THAT SO I DECIDED TO START
THAT NEW JOB.
UNFORTUNATELY SINCE I WAS
STARTING A NEW JOB I WAS PUT ON
PROBATION FOR THREE MONTHS
BEFORE I COULD RECEIVE ANY
BENEFITS.
AND I SOMEONE WHO IS DIABETIC I
CANNOT JUST LIKE STOP MY
MEDICATIONS SO.
IT WAS EITHER.
GET MY OWN INSURANCE PRIVATELY
FOR THE THREE MONTHS THAT I'M ON
PROBATION OR AND NOT HAVE ANY
MEDICATIONS THAT TIME -- I
REMEMBER RECEIVING MANY MANY
EMAILS FROM -- ONE MAIL SAYING
YOU KNOW JUST JUST HI IT'S JUST
GONNA BE A SOFT INQUIRY JUST
JUST GO FOR IT SO I SAID WHY NOT.
I'M A READING NEEDED THE MONEY
SO I DID THAT AND UNFORTUNATELY --
THE SAID THAT I WOULD ONLY BE
APPROVED IF I CAN PUT IN -- A
TITLE LOAN FOR CARP WHICH I DID
NOT OWN AT THAT TIME.
SO FOR ME IT WAS AN OPTION OF
WHETHER JUST NOT HAVE.
MEDICATIONS FOR THREE MONTHS OR
SEEK OUT OTHER OPTIONS --
KNOWING THAT EACH TIME I APPLY
FOR A LOAN THERE'S GONNA BE A
HARD IN QUERY ON MY CREDIT AND
IT'S GOING TO STAY THERE FOR TWO
YEARS I CANNOT AFFORD.
TO PUT MORE DAMAGING MY CREDIT
SINCE -- AT THAT TIME IT WAS
JUST THAT -- FIVE SIXTY ONE OF
THE CREDIT REPORTING AGENCIES
THAT I HAVE -- I WAS USING TO
MONITOR MY CREDIT -- PUT LOW --
GIVE ME A RECOMMENDATION AND
I'LL ONE LENDER.
I DID MY RESEARCH -- I FOUND
GOOD REVIEWS ON THEM I DID MY
CHIU DILIGENCE AND ON FINDING
OTHER OPTIONS BUT AT THAT TIME
THEY SOMEONE WAS SOMEONE WHO WAS
ABLE TO HELP ME OUT.
I WENT THROUGH THE PROCESS THE
VERIFIED MY IDENTITY VERIFIED MY
INCOME THEY MADE SURE THAT I AM
ABLE TO PAY BACK WHAT I ATE I AM
GOING TO BE TAKING OUT.
THEY WERE VERY TRANSPARENT ON A
WHAT -- THE WERE OFFERING THE
TOLD ME EXACTLY HOW MUCH I NEED
TO PAY AND WHEN I NEED TO PAY IT.
SO THE DECISION TO TAKE THAT OUT.
THAT'S ON ME I SHOULD BE
RESPONSIBLE TO PAY THAT BACK.
BECAUSE THEY ALREADY TOLD ME
WHAT'S GOING TO HAPPEN IT'S NOT
LIKE TO BE THE HIT THIS
INFORMATION FOR ME I KNEW
EXACTLY WHAT I WAS GETTING
MYSELF INTO.
SO IF I WAS NOT ABLE TO BE THAT
BACK THAT'S FUNNY BECAUSE I WAS
THE ONE WHO MADE THAT DECISION
THEY DID NOT TWIST MY ARM TO GET
THIS LOAN.
I WAS THE ONE WHO WALKED INTO IT.
SINCE HAVING THAT LOAN MY CREDIT
SCORE HAS WENT UP FROM -- FIVE
SIXTY TO SIX FIFTY WHICH I AM
VERY THANKFUL FOR BECAUSE THEY
ARE REPORTING ALL OF THE ON TIME
PAYMENTS THAT I HAVE BEEN MAKING
AND I WOULD NOT HAVE BEEN ABLE
TO GET TO THAT SCORE HAD THE NOT.
HELP ME OUT AND YOU KNOW.
LOOK PAST THE NUMBERS THAT I HAD --
THEY HAVE ALWAYS SAKE -- HELP ME
LIKE AB THEY THEY GIVE ME AYE
NOTIFICATIONS ON WHEN MY PAYMENT
SERGIO THEY'VE BEEN VERY HELPFUL
IN MAKING SURE I DID NOT.
DEFAULT ON THIS LOAN THE BEING
VERY RESPONSIBLE.
I JUST WANT TO POINT OUT THAT.
WE DID NOT.
GOAL FOR A HIGH INTEREST LOAN
RIGHT AWAY.
WE SEEK OUT THESE.
LOWER OPTIONS YOU KNOW.
THE FACT IS THAT.
THEY HAVE EXISTED ALREADY THEY
HAVE ALREADY PROVEN TOSS THAT
THEY'RE NOT THERE TO HELP US.
WE HAVE GONE THROUGH THAT ROAD.
AND WITH THIS BILL PASSING WE
FEEL LIKE WHEN YOU'RE TAKING ONE
OF OUR OPTIONS AWAY FROM US AND
IT'S VERY CONCERNING -- SO WE WE
WOULD LIKE -- TO PLEASE VOTE NO
ON THE BILL BECAUSE WE WE NEED
OUR OPTIONS OPEN AND WE ALREADY
KNOW THAT THESE OTHER COMPANIES
OR SAYING THAT THEY'RE GONNA
STEP IN.
THEY'RE NOT HERE TO HELP US
THEY'VE ALREADY PROVEN THAT.
THE CUTE.
ADDITION WITNESSES OPPOSITION
YES THANK YOU MARIA SUMMARY I
APPRECIATE YOU SHARING YOUR
PERSONAL EXPERIENCES.
YEAH IT WAS SAID THAT THIRTY
EIGHT STATES.
MY NAME IS MELISSA SOBRE WITH
KERO FINANCIAL ME START THERE.
THE COMMENT WAS THIRTY EIGHT
STATES HAVE A SIMILAR RATE CAPS --
THAT'S ACTUALLY NOT TRUE WE LAND
IN TWENTY TWO STATES WITH NEW
INSTALLMENT PRODUCTS AT A TRIPLE
DIGIT APR.
SOMETIMES WHEN YOU LOOK AT THESE
OTHER STRAIGHT YOU MAY SEE AN
INTEREST RATE CAPS BUT THAT'S
NOT AN APR CAP THIS OTHER
ALLOWABLE FEES AND CHARGES THAT
MAKE IT THEREFORE VIABLE FOR US.
TO TO LOAN TO SUBPRIME CONSUMERS --
IN THIS INSTALLMENT LOANS AUTO
TITLE LOANS THEY'RE JUST LIKE
ANY OTHER FINANCIAL PRODUCTS OR
SERVICES LIKE LIKE -- AUTO
INSURANCE OR CAR LOANS.
THE COSTS REFLECT THE RISKS.
THESE LOWER COST LENDERS
SUPPORTING THIS BILL ONE MAIN.
LANDMARK OPPORTUNE THEY DON'T
WANT TO THESE CONSUMERS TODAY
BECAUSE IT'S NOT VIABLE TO DO SO --
WE HEARD SOME COMMENTS FROM
OPPORTUNE AND AFTER SEVEN YEARS
OF THE PILOT PROGRAM IN
EXISTENCE WITH TWO REVISIONS TO
THAT PILOT PROGRAM IS STILL LESS
THAN 5% OF THE CONSUMER LENDING
THAT'S HAPPENING IT'S A TERRIFIC
PRODUCT.
BUT IT DOESN'T SERVE VERY MANY
CONSUMERS HERE IN CALIFORNIA.
THERE ARE MORE THAN THIRTEEN
MILLION CONSUMERS IN CALIFORNIA
WITH A SUBPRIME CREDIT SCORE OR
NO CREDIT SCORE AT ALL.
THERE ARE MORE THAN FOUR HUNDRED
THOUSAND CONSUMERS LIKE NERISSA
IN MARIA.
THAT ORIGINATE THESE LOANS EACH
AND EVERY YEAR.
COM WE HEARD A LITTLE BIT ABOUT
ANCILLARY PRODUCTS OF SOME
LENDERS DO DO THIS -- TO
INCREASE A LITTLE BIT OF THEIR
PROFIT MARGIN SO THAT THEY CAN
SLIGHTLY EXPAND THE NUMBER OF
CONSUMERS THAT THEY CAN SERVE
AGAIN.
IT'S AN ECONOMIC MODEL.
A BY VOTING TODAY FOR FIVE
THIRTY NINE YOU'RE MAKING A
STATEMENT ABOUT WHO GETS ACCESS
TO STATE REGULATED CREDIT.
BECAUSE MAKE NO MISTAKE ABOUT IT
ON THESE OVER FOUR HUNDRED
THOUSAND CONSUMERS BY AND LARGE
THE CHOICES THAT ARE GOING TO BE
LEFT WITH.
HIS TRIBAL LANDING AT HIGHER
RATES.
PREPAYMENT PENALTIES IN OTHER
ISSUES THAT MIGHT COME ALONG.
OR OFF SHORE ILLEGAL LENDERS.
WHAT YOU'RE NOT GOING TO SEE
THAT LOAN VOLUME IT'S GOING TO
BE OFF THE GRID IT'S NOT GOING
TO SHOW UP ON THE CFO ANNUAL
REPORT THAT'S ISSUED BY THE DB
OUT?
SO YOU'RE NOT GOING TO SEE THE
UNINTENDED CONSEQUENCES OF THIS
BILL.
WE'VE TRIED TO PROPOSE
ALTERNATIVE SOLUTIONS TO BROADEN
THE NUMBER OF CONSUMERS THAT
WILL STILL BE ABLE TO GET ACCESS
TO STATE REGULATED CREDIT BUT
NONE OF THOSE.
NONE OF THOSE OPTIONS -- WERE
ACCEPTED -- I'VE HEARD ALSO THAT
FOR OVER NINE MONTHS WORKING
WITH ALL STAKEHOLDERS.
THERE HASN'T BEEN ANY ENGAGEMENT
WITH US TO HELP MAKE SURE THAT
WE HAVE CONTINUED CREDIT
AVAILABLE FOR CONSUMERS LIKE
MARIA AND MARISSA.
SO IN YOU'VE HEARD FROM
THOUSANDS OF OUR CUSTOMERS
EITHER BY LETTER OR BY.
PHONE CALLS TO LETTING THEM KNOW
LETTING YOU KNOW ABOUT THEIR
CONCERNS ON THIS BILL SO I
REALLY EMPLOYEE THIS POLICY
COMMITTEE TO WEIGH THE OUTCOMES
OF FIVE THIRTY NINE VERY
CAREFULLY.
THANK YOU THANK YOU ADDITIONAL
WITNESSES IN OPPOSITION.
I'M NEEDING ON TO PEARLS.
FROM I AM A STATE EMPLOYEE AND A
MEMBER OF SEIU.
LOCAL ONE THOUSAND I'M ALSO
VETERAN AND HISPANIC
[inaudible]
NEXT WITNESS.
NO MORE WITNESSES IN OPPOSITION
OCCUR.
PATRICIA MCBRIDE SACRAMENTO
CALIFORNIA I OPPOSE THIS BILL
THANK YOU NEXT WITNESS.
CALLING MOLOKAI I WORK WITH
ADVANCE AMERICA BEEN THERE FOR
EIGHT YEARS AND I OPPOSE THIS
BILL THANK YOU.
SELENA PRIOR CALIFORNIA STATE
AND DOUBLE ACP [inaudible]
THANK YOU. ZERO I WORK FOR
ADVANCE AMERICA I WORKED THERE
FOR TEN YEARS OF MY CUSTOMERS
LET ME APPLES THIS BILL THANK
YOU.
ROB CALLAWAY ALSO WORK.
AMERICAN I OPPOSE THIS BILL.
MISTER CHAIRMAN SENATORS ARE
WOULD COULD ON A REPRESENTING
THE **** CALIFORNIA FINANCIAL
SERVICE PROVIDERS ASSOCIATION
FOR REASONS PREVIOUSLY STATED.
AND ALSO FOR THE DESIRE TO COME
TO THE TABLE FOR SOMETHING
REVOLUTIONARY AS HAS BEEN STATED
WE CONTINUE TO WANT TO WORK WITH
THE AUTHOR AND PROPONENTS.
YOU KNOW TO THIS PROCESS BUT AS
OF YET -- THAT HAS NOT BEEN THE
CASE FOR THOSE REASONS WE
STRONGLY OPPOSE THIS BILL.
THANK YOU.
RESTROOMS CHAIR OF JUSTIN FANS
ALL ON BEHALF OF LAMAR IN
OPPOSITION.
RACHEL SCHREIBER TMX FINANCE
FAMILY OF COMPANIES IN
OPPOSITION THANK YOU.
ROBERT RICHE COMMUNITY LOANS
AMERICA IN OPPOSITION THANK YOU.
ROB CREATURE WITH COMMUNITY
CHOICE FINANCIAL I SPENT FIFTEEN
YEARS AS A REGULATOR OF NON
DEPOSITORY INSTITUTIONS IN THE
STATE OF OHIO.
AND WITH MY EXPERIENCE I CAN
TELL YOU THAT THIS SOLUTION IS
NOT THE CORRECT ONE TO MOVE
FORWARD WITH. FOR THOSE REASONS
AND OTHERS.
I ASK THAT YOU OPPOSE THIS BILL
THANK YOU.
CHAIR MEMBERS PAUL LET FILLED
THE ON BEHALF OF ACCESS
FINANCIAL AND CASH YOUR CASH AND
CREDIT -- WE OPPOSE THIS BILL AS
WELL -- WE THINK THIS LIMITS
ACCESS TO CREDIT THAT'S WHAT
THIS BILL WILL DO.
THANK YOU.
TERM MEMBERS ALEX FELONIES ON
BEHALF OF THE FROM WHICH ALLOW
MùT OF UPPER LAKE -- WE HAVE
AN OPPOSE LESS AMENDED POSITION
ON THE BILL THANK YOU.
DAVID KING TUT OF THE ONLINE
LENDERS ALLIANCE IN OPPOSITION
TO THE BILL THANKS.
A GOOD AFTERNOON MR CHAIRMAN
MEMBERS POP OUR ON BEHALF OF
ELEVATE IN OPPOSITION TO THIS
BILL THANK YOU.
ANY ADDITIONAL WITNESSES IN
OPPOSITION.
SHEENA AND BRING IT BACK TO
COMMITTEE ANY QUESTIONS COMMENTS
FOR THE COMMITTEE.
MAN BY SIR.
THANK YOU SO MUCH WITH YOU'LL
HAVE TO FORGIVE MY VOICE -- YOU
KNOW I'VE STRUGGLED WITH THIS
ISSUE AND AND I KNOW THAT MANY
MANY OF MY COLLEAGUES IN THIS
COMMITTEE HAVE.
ALSO STRUGGLED AND YOU KNOW ON
ONE HAND THE FREE MARKET HAS
BLESSED US WITH WITH A LOT AND
TO AND THAT INCLUDES WAYS.
OF FOR US ACCESS CAPITAL WHEN WE
NEEDED BUT I TELL YOU WHEN I'M
NOT I'M IN THE DISTRICT AND I'M
TALKING.
TO OF FOLKS IN MY DISTRICT.
YOU KNOW THEY SAID LOOK COST
LIVING YEARS AGO IT IS EXTREMELY
HIGH RENTS ARE HIGH GAS PRICES
ARE HIGH.
YOU KNOW THINGS IN GENERAL ARE
EXPENSIVE AND IT'S OFTEN HARD TO
TO MAKE ENDS MEET.
AND IT REALLY CAN BE A STRUGGLE
PEOPLE DO NEED A NEED A
MECHANISM TO TO MAKE THINGS MEET
BUT AS A WE DON'T HAVE AN
UNFETTERED MARKET HERE IN THIS
COUNTRY AND WE HAVE SOME RULES
TO PROTECT.
PEOPLE AND AS I GO BACK AND
FORTH BECAUSE I GOTTA TELL YA I
WENT THROUGH A WAITED THROUGH A
TON OF INFORMATION.
AND ULTIMATELY WHAT PUSHED ME
WAS -- AND WHAT CONVINCED ME WAS
THAT -- I BELIEVE THAT THIS IS A
MORAL ISSUE.
AND I ASK MYSELF IS A 2100%
INTEREST LOAN MORALLY SOUND --
ONE MY CONSTITUENTS STRUGGLE TO
MAKE ENDS MEET. TO ME THE ANSWER
IS NO.
AND I'M NOT GONNA PUT THEM UNDER
THE WEIGHT OF INCREDIBLE DEBT.
THAT IS NOT PAID OFF COULD
DESTROY THEIR LIVES.
THE CHALLENGES WHERE DO YOU DRAW
THE LINE I KNOW THAT THERE ARE A
LOT OF REASONABLE PEOPLE WHO CAN
DISAGREE ABOUT WHERE THAT IS
I'VE HEARD.
YOU KNOW 100% SOME SAY 10%.
AND I THINK AFTER CONSIDERABLE
YOU KNOW I THOUGHT -- I THINK
YOU MADE THE BEST EFFORT TO
STRIKE THAT BALANCE.
SO DESPITE THE BILL'S MERITS --
THIS IS GONE THIS IS GOING TO BE
A BIG CHANGE IN THE MARKET AND
CURRENTLY THE BILL IS LIMITED.
TO SHORT TERM LOANS RANGING FROM
TWENTY FIVE HUNDRED AND
990-009-0090.
NINE AND THERE ARE MANY
DIFFERENT KINDS OF LOANS ON THE
MARKET.
SO I COULD SEE A DESIRE BY SOME
TO WANT TO EXPAND THIS TO OTHER
TYPES AND SIZES OF LOANS AND I
AM GOING TO JUST PUT IT OUT
THERE I'M GOING TO BE.
THAT.
WE DO NEED TO PROCEED CAUTIOUSLY
SO WOULD YOU COMMIT TO KEEPING
THIS BILL CONTAINED. TO THE TO
FOCUS ON LOANS THAT WE ARE
DISCUSSING TODAY YES THIS BILL
IS THIS BILL IS REALLY FOCUSED
ON SMALL DOLLAR LANDING I THINK
AS EVIDENCED BY THE FACT THAT
LAST YEAR.
I WAS CARRYING MULTIPLE BILLS IN
DIFFERENT SPACES -- THAT WERE
OUT NOT JUST IN THE SMALL DOLLAR
250-021-0000 AND THIS DIDN'T THE
INTENT HAS ALWAYS BEEN THERE IF
I WANTED TO INCLUDE PAYDAY OR
OTHERS I THINK THAT THAT WOULD
HAVE BEEN -- IN THERE AND SO
THIS IS WHAT IT IS I ALSO THINK
THAT -- IN LIGHT OF ALL YOU KNOW
THIS IS A BIG BILL I THINK EVERY
SINGLE PERSON ON HERE HAS SPENT
LOTS OF HOURS AND TIME THINKING
ABOUT THIS BILL -- I ALSO WANT
TO MAKE SURE THAT WE HAVE
EVIDENCE TO BACK UP SOME OF THE
CLAIMS THAT ARE BEING MADE
GOODNESS GRACIOUS I KNOW THAT
I'VE HEARD CLAIMS THAT I DON'T
EVEN KNOW WHERE THEY'RE COMING
FROM -- I I DON'T FEEL THAT.
AS THE AUTHOR OF THE BILL THAT
WE'VE PROVIDED EVIDENCE THAT WE
ARE GOING WITH THIS BILL
ANYWHERE ELSE CERTAINLY ANYONE
WHO HAS FOLLOWED MY TRACK RECORD
KNOWS THAT THE OVERALL SPACE OF
SMALL DOLLAR LENDING IS A SPACE
WHERE I DO WORK -- AND I DO WORK
IN DIFFERENT AREAS THIS BILL
FIVE THIRTY NINE IS 250-021-0000.
THANK YOU THANK YOU SO MUCH.
HI CENTER HUESO.
THANK YOU AND I APPRECIATE ALL
YOUR HARD WORK ON THIS THIS IS A
VERY IMPORTANT ISSUE AND THIS IS
SOMETHING THAT REALLY DESERVES
OUR ATTENTION -- I HAVE WORKED
IN THIS AREA FOR MANY YEARS
TRYING TO PROVIDE -- PROGRAMS
THAT PROVIDE ACT -- ACCESS TO
CAPITAL FOR SMALL BUSINESSES.
IT'S A VERY EXPENSIVE
PROPOSITION TO FIND A LOT OF
THESE PRO PROGRAMS LIKE LIKE
LISK AND AND AXION THAT THAT.
WORK TO TRY.
TO BRIDGE THAT GAP TO MAKE --
LOANS MARKS BUT ACCESSIBLE
BUSINESS.
NO WE WE KNOW THAT IN OUR STATE
ONLY 10% OF THE BUSINESSES OF
THAT LOOK FOR LOANS ACTUALLY GET
FUNDED YOU OFF THOUGH.
PRACTICALLY NOT NEED A LOAN TO
GET A LOAN IN THE STATE AND THAT
SET SOMETHING IS BEEN VERY
IMPORTANT TO ME.
AS YOU KNOW I ALSO WORKED ON A
BILL TO PROVIDE -- CONSUMER.
PROTECTIONS ON THIS BILL WITHOUT
ELIMINATING ACCESS BUT AT LEAST --
FOCUSING ON ENSURE ENSURING
PEOPLE KNOW WHAT KIND OF DEALS
ARE GETTING IN TO MAKE SURE THIS
FULL DISCLOSURE MAKE SURE.
THAT THEY'RE ABLE TO PULL OUT OF
A BAD TRANSACTION FEW DAYS AFTER.
THEY'VE ENTERED INTO AN IN CASE
THEY CHANGE THEIR MIND THERE
WERE ALL THESE THINGS IN THIS
BILL AND THAT THIS.
HERE IN THE SENATE LEAST -- THAT
THE SUPPORTERS OF THIS BILL
DIDN'T DON'T WANT CONSUMER
PROTECTIONS A ONE ELIMINATE.
THAT THE HIGH INTEREST RATE LOAN
AND AND THE FOR THE TRUTH IS
CURRENTLY.
WE HAVE PROGRAMS THAT ARE THAT
ARE CAPPED LIKE -- THE ONE THAT
OPPORTUNE LENDS AN THAT'S
SUBJECT TO A THIRTY SPURS 6%
INTEREST RATE.
AND AND AND REPORT IN TWENTY
SEVENTEEN THAT WAS PUBLISHED --
THROUGH OUR OUR SEEM VERY OFTEN --
OUR BIZ ARE [inaudible]
OUR OF DEPARTMENT OF BUSINESS
OVERSIGHT. 57% OF THE PEOPLE
THAT APPLY TO THAT PROGRAM EVEN
WITH A CAP OR DENY.
SO WHAT ARE THOSE PEOPLE GOING
TO GO -- IF IF THIS.
IF YOU IF YOUR BILL PASSES WERE
THOSE PEOPLE GOING TO GO.
THEY'RE GOING TO GO TO THE BLACK
MARKET THEY'RE GOING TO GO TO
THE UNDERGROUND ECONOMY THEY'RE
GOING TO GO -- TO LENDERS THAT
ARE NOT REGULATED THAT.
YOU KNOW GROWING UP.
I THE IT WE USED TO HAVE LOAN
SHARKS IN MY NEIGHBORHOOD THAT.
THAT THAT HURT PEOPLE IF THEY
DIDN'T PAY.
AND WHEN SOMEBODY IS DESPERATE.
WHERE THEY'RE GOING TO GO FOR
HELP?
I I DON'T LIKE I INTEREST RATE
LOANS I PREFER WE AS A STATE
COME UP WITH A SOLUTION TRYING.
TO OF OF BRIDGE THAT GAP THAT'S
WHY SUPPORTERS STATE BANK STATE
BANK COULD BE MORE AGGRESSIVE.
IN IN IN -- HELPING PEOPLE GET
BANK TO HELPING PEOPLE.
GET A CREDIT RATING -- YOU KNOW
BUT WHEN I WHEN I GET LETTERS
FROM MY CONSTITUENTS BY IT THAT
THEIR POURING INSANE.
I'VE USED THIS PROGRAM THIS IS
HAS HELPED ME.
A LOT THIS BILL WOULD BASICALLY
LE ELIMINATE MY ACCESS TO GET --
LOANS.
IT FIRST THINGS THAT WERE
INSTRUMENTAL IN HELPING ME --
SOLVE A PROBLEM.
IT'S HARD FOR ME TO TO TO IGNORE
PEOPLE THAT USE THESE LOANS THAT
NEED THEM -- AND AND AND LISTEN
THEM SAY WE NEED THIS IF YOU
TAKE THIS WAY WE HAVE NOTHING.
AND AND AND AND USUALLY THE
PEOPLE THAT ADVOCATE FOR THE
ELIMINATION OF OF THIS PROGRAM
ARE THE ONES THAT DON'T USE
PROGRAM AND THAT'S THAT'S ALWAYS
BEEN TRUE.
WHEN WE HAVE THESE KIND OF OF OF
BILLS COME FORWARD?
AND AND YOU KNOW OF TELLING
PEOPLE HOW TO MANAGE YOUR
FINANCES I DON'T THINK IT'S THE
GOVERNMENT'S JOB TO DO THAT I
THINK WE SHOULD HELP THEM.
EN EN -- EDUCATING THEM
PROVIDING THE MEDICATION. FOR
PROVIDING THEM ACCESS TO BETTER
PROGRAMS -- BUT I I APPRECIATE
WHAT YOU'RE DOING NONE THE LESS
AND I WOULD HOPE THAT -- WE WE
PUT IN STRONG CONSUMER
PROTECTIONS.
OF THAT WOULD BE OF OF A FAR
BETTER APPROACH TO MAKE SURE THE
PEOPLE ARE.
OUR BANKED AND AND BUT ANYWAY
THANK YOU MISTER SHARON AND
THANK YOU WHEN IT.
FOR FOR WORKING FOR COMMENTS
CENTER GALLERY WORK.
THANK YOU MISTER CHAIRMAN I
SUPPORT YOUR BILL IN THE
ASSEMBLY AND THAT I GOT ON THE
BANKING COMMITTEE AND I LEARNED
A LOT MORE ABOUT BANKING THEN I
THOUGHT I KNEW.
I WANT TO SHARE STORY WITH YOU I
HAPPEN TO BE ONE OF THOSE PEOPLE
THAT.
CUTTING IT ALONE.
EARLY IN MY LIFE.
AND BUT I KNEW BETTER THAN -- 2%
OR HIGHER LOANS I COULDN'T GET
ALONE I WENT TO THE BANK AND TRY
TO START A BUSINESS.
AND SO I'VE BEEN THERE WHERE
THEY'RE AT AND I ACTUALLY WAS
FORTUNATE ENOUGH TO FIND A
PRIVATE.
PERSON THAT WOULD LOAN ME MONEY
TAKE A RISK ON ME.
AND IT PROVED OUT GOOD AND I
HAVE A GREAT CREDIT RATING NOW.
BECAUSE SOMEBODY TOK A RISK ON
ME SO I WANT TO ASK YOU A COUPLE
QUESTIONS AYE AYE.
I UNDERSTAND WHERE YOU'RE GOING
I AM VERY ADAMANT AGAINST
SOMEBODY BEING PREYED UPON
BECAUSE OF THEIR SITUATION.
I THINK THAT'S WRONG.
BUT ALSO THERE'S RISK THERE'S
RISK INVOLVED IN.
WAS WHAT WE HAVE A CREDIT SCORES
BECAUSE THERE'S RISK.
AND THE HIGHER THE RISKS
[inaudible]
THE MORE.
YOU HAVE TO COMPENSATE FOR THAT
BECAUSE YOU HAVE FAILURES WHEN
YOU DO THAT SO II WANT TO KNOW
WHAT WHAT WHAT WHAT HOW WE GET A
GAUGE AND HOW WE GONNA.
HOW WE GONNA LOOK FOR THOSE
PEOPLE THAT DON'T THAT THE?
SENATOR HUESO WAS TALKING ABOUT
HOW WE GONNA FIND OUT IF WE LOSE
HIM AND IS THERE SOME WAY WE CAN
TRACK OR TRY TO FIGURE OUT IF WE
LOST IN THE AFTER THIS BILL.
BECOMES LAW BECAUSE FOR ME IF
THEY WE REALLY DO EXCLUDE THOSE
HIGH RISK PEOPLE NOBODY WILL
TAKE A RISK ON A MAYBE THEY'LL
BE LIKE ME AND I WOULD HAVE THAT
OPPORTUNITY.
I WANT YOU TO ADDRESS THAT
BECAUSE THAT THAT TO ME IS A
CRITICAL PART OF THIS -- HOW WE
GO FORWARD I I I BELIEVE YOUR
BILL IS GOING TO BE?
SIGNED A LAW.
BUT DOES THAT MEAN THAT IT'S
DOES THAT MEAN IT'S PERFECT --
RIGHT NOW I THINK THAT WE NEED
TO WE NEED TO THINK ABOUT.
THE PEOPLE THAT.
ARE IN THOSE SITUATIONS I WANT I
WANT YOU TO TALK ABOUT THAT
BECAUSE I THINK THERE'S AN AND
ALSO WANT TO TALK ABOUT THE THE
ADD ON PRODUCTS THE INSURANCE.
THOSE ARE THOSE TO ME ARE --
THEIR WAYS AROUND.
GETTING WHERE THEY'RE TRYING TO
GO TO TO UP THAT LIMIT AND SO --
AND THEY ALSO USE THOSE AS TOOLS
TO GAME THOSE PEOPLE WHO ARE NOT
AS WELL EDUCATED OR OR OR IN
THAT POSITION WHERE THEY JUST
HAVE TO HAVE THE RESOURCES THAT
DAY AND SO I WANT YOU.
TO ADDRESS THOSE COUPLE THINGS
FOR ME.
AND I I APPRECIATE THE COMMENTS
AND CERTAINLY THE BILL YOU HAVE
IN FRONT OF YOU IS A COMPROMISE.
THE BILL THAT IS IN FRONT OF YOU
IS NOT PERFECT -- AND KNOW WHERE
WE WENT WE SAW THAT THERE WAS
THREE SCHOOLS OF THOUGHT. ONE
THAT THE PRODUCT SHOULD BE
ELIMINATED ALTOGETHER WHICH IS
NOT THE BILL YOU HAVE IN FRONT
OF YOU -- OTHERS THAT DID NOT
FEEL THAT IT SHOULD BE REGULATED
WHATSOEVER IN TERMS OF THE RATE.
AND THEN THIRD THAT THEY FELT
THAT SOMEWHERE IN THE MIDDLE AND
THERE'S NOT.
A MAGIC NUMBER BUT THE WAY WE
GOT 236% PLUS FEES PLUS
ANCILLARY PRODUCTS HE IS BECAUSE
WE LOOKED AT WHERE.
THE DEFAULT RATES WERE AT SINGLE
DIGITS THERE WILL STILL BE
PEOPLE.
WHO WILL DEFAULT?
BUT WE WANTED TO REDUCE IT FROM
AS THE AS IT WAS STATED IN THE
ANALYSIS FROM THE NEARLY 40%.
THAT GO INTO COLLECTIONS TO A
SINGLE DIGIT.
WE ALSO LOOKED AT WHAT'S BEEN
DONE IN THE COUNTRY WE KNOW THAT
36% RATE CAME FROM THE MILITARY
LANDING ACT FOR THEIR HAY HAD
BEEN TRIED AND TESTED WE KNOW
THE OTHER STATES -- I DON'T KNOW
THAT EVEN IF WE SPENT THE ENTIRE
CONVERSATION TODAY THAT WE WOULD
BE ABLE TO FIND THIS MAGIC
NUMBER THAT WOULD SOMEHOW BRING
A COALITION TOGETHER -- BIGGER
THAN WHAT WE SEE HERE TODAY I
THINK THAT THERE WOULD BE LOTS
OF DEBATE WE NEVER CREATED THIS
PRODUCT.
OR THIS BILL WITH THE INTENT OF
HELPING ONE COMPANY OVER THE
OTHER WE DID A IN THINKING OF
THE CONSUMERS THE TWO STORIES
THAT WE HAVE -- IN FRONT OF US
FROM IBM MONEY SAYS -- IN A A
BELIEVE I GOT YOUR NAMES CORRECT
BUT MY YEAH MONEY SACK.
ARE IMPORTANT STORIES TO
CONSIDER THIS BILL DOES NT
SOLVE FOR THE CONTINUED NEED AT
HISTORICAL NEED THAT WE AS A
LEGISLATURE MUST DO MORE.
MUST DO MORE FOR THE PEOPLE OF
CALIFORNIA FOR THE UNDER
REPRESENTED FOR THE LOW INCOME
AND FOR THE WORKING CLASS WE
APPROACH THIS FROM THE
PERSPECTIVE THAT.
IF WE REALLY WANT TO DEAL WITH
WHAT I HEAR.
ARE EMERGENCIES.
EMERGENCY THAT WORKING CLASS AND
PEOPLE WHO ALSO WHO COME FROM
LOW INCOME BACKGROUNDS HAVE.
THIS IS NOT THE ULTIMATE
SOLUTION.
THE ULTIMATE SOLUTION IS FINDING
WAYS TO GET PEOPLE A GOOD JOB.
GOOD SALARY PAY MAKE SURE THAT
THEY'RE NOT GOING INTO POVERTY
THAT IS THE SOLUTION AND WE MUST
INVEST MORE THIS.
IS DEALING WITH THE FACT THAT
ALMOST 40% OF THE PEOPLE WHO
TAKE OUT THIS PRODUCTS DON'T
HAVE THE STORIES.
THEY DON'T THEY DON'T HAVE THE
STORIES.
THAT WE HEAR MONEY SEND MONEY AT
THE TALK ABOUT AND THAT'S A
PROFIT THAT'S A PROBLEM.
CREDIT CARD FOR EXAMPLES THEIR
RATE OF DEFAULT IS 4% I'M SORRY
THEIR RATE DEFAULT YES IS 4%.
AND THIS IS NEARLY TEN TIMES
THAT SO WE HAD TO DO SOMETHING
ABOUT THIS PRODUCT WE STILL ARE
OPEN I AS A MEMBER CONTINUE TO
HAVE CONVERSATIONS WITH ALSO
TRADITIONAL FORMS OF BANKING AND
NONTRADITIONAL FORMS A BANKING
ABOUT WHAT WE CAN A SINGLE ILL.
IN TERMS OF THE FINANCIAL
ASPECTS THIS IS REALLY
ADDRESSING THE ALMOST 40% THAT
DON'T HAVE THE STREET GOOD
STORIES THAT COME OUT THAT LOSE
THEIR CAR THEY GO INTO A DRUG
DEBT CYCLE THAT GO INTO REALLY.
A WORSE SITUATION THAN WHEN THEY
STARTED -- YOU I WANT YOU TO ME
FOCUS A LITTLE BIT.
THEY BOTH HAVE JOBS [inaudible]
N..
SO I I WANT TO FOCUS ON THOSE
WHO ARE GONNA BE PRICED OUT OF
THIS WHERE THEY CAN'T GET IN
THIS MARKET BECAUSE THEY'RE
GONNA THERE'S A CAP ON THERE'S A
HIGH RISK WHAT.
WHAT WERE THEY GO?
SO IF I MAY UM THE SENATOR DOLLY
YOU AND I BOTH HAVE MADE MANY
VOTES ON LEGISLATION THAT WAS A
PERFECT.
AND SO THERE ARE ANSWERS THAT WE
WERE THERE ARE QUESTIONS THAT WE
DON'T HAVE FULL COMPLETE ANSWERS
TO WHAT THIS BILL IS ABOUT IS
CONSUMER PROTECTION AS SENATOR
HUESO WAS -- POINTING OUT IT IS
SO IMPORTANT THAT WE LOOK TOWARD.
AS FAR AS TRYING TO MAKE SURE
THAT WE PROVIDE A PRODUCT FOR
WHICH THE CONSUMER IS SAFE TO
USE.
AND IN THIS PARTICULAR CASE --
FOR THE FOR THE ROOM WITH THE
REASONS THAT OPPOSITION WOULD
HAVE THE BELIEVE THAT -- ACCESS
WOULD GO AWAY.
WE BELIEVE THAT THERE ARE -- AS
MANY OR MORE REASONS TO BELIEVE
THAT -- ACCESS WILL BE GREATER
AND THAT MORE -- MORE LENDERS
WILL FIND CALIFORNIA -- AS A AS
A PLACE THAT THEY CAN ENTER INTO
THE MARKET NOW.
AND THEY CAN START LENDING -- I
WANT TO GO BACK TO SOMETHING AND
WILL ANSWER THE QUESTION -- WHEN
YOU'RE TALKING ABOUT YOU BROUGHT
UP INSURANCE AND ANCILLARY
PRODUCTS?
AND WHEN YOU TALK ABOUT THE
ANCILLARY PRODUCTS ON A SMALL
ALONE UNDER THIS BILL YOU'RE
TALKING ABOUT AN ADDITIONAL ONE
TO TEN DOLLARS A MONTH.
IN COMPARISON TO A LOAN OF A
100% OR MORE TRIPLE DIGIT LOAN.
AND THE AMOUNT OF INTEREST RATE
THAT THEY'RE PAYING ONE TO TEN
DOLLARS A MONTH DOESN'T EVEN
COME CLOSE OR DROP IN THE BUCKET
COMPARED TO THE AMOUNT OF
INTEREST THAT'S BEING PAID BACK.
AND AS WAS ALREADY MENTIONED 40%
OF THOSE INDIVIDUALS ARE ABLE TO
PAY THAT BACK END UP IN
COLLECTIONS AND ACTUALLY END UP.
IN A MUCH WORSE SITUATION THAN
WHAT THEY STARTED OUT WITH IN
THE NEED FOR THE MONEY IN THE
FIRST PLACE.
I GOT INTO THIS BECAUSE AS THE
SENATOR ALREADY MENTIONED IT IS
A MORAL ISSUE.
AND THE MORAL ISSUE IS DO WE
PROTECT OUR FOLKS ARE IN
CALIFORNIA.
AND DO WE WORK AND THIS IS A
PIECE OF THE WORK.
THE GREATER WORK THE CALIFORNIA
MUST DO THIS IS JUST A PIECE OF
AND IT'S NOT THE PANACEA DOESN'T
FIX EVERYTHING.
AND WE WOULD LOVE TO THE IF WE
HAD THE RECIPE TO DO THAT WE
JUMP IN AND FIX EVERYTHING.
BUT THIS IS A START IN THE RIGHT
DIRECTION TO HELP PEOPLE AND
HELP CONSUMERS AND PROTECT THEM
AND I'D I DO BELIEVE IF YOU WANT
TO GET DEEPER IN THE WEEDS ON
THE INSURANCE AN ABSOLUTE
PRODUCTS.
WE DO HAVE A WITNESS HERE THEY
CAN -- ANSWER DEEPER QUESTIONS
FOR YOU AND I WILL ADD THAT A
MEMBER OF THE SENATE BANKING
COMMITTEE IS ALSO BRINGING
FORWARD SOME CONVERSATIONS THAT
WERE NOT HAVING ABOUT THE ROLE
OF TECHNOLOGY AND EMPLOYERS
PARTNERING WITH US SO WE ARE
SEEN A RISE.
ON THE IN OTHER PRODUCTS THAT
ARE INCLUDED IN THE MARKET THAT
DON'T NEARLY HAVE THE RATES --
CLOSE TO WHAT WERE SEEN THAT ARE
WORKING IN A YOU KNOW IN SOME
CASES WITH THE EMPLOYERS
THEMSELVES -- AND I THINK THAT
THIS COMMITTEE HAS HEARD THAT
BILL CONVERSATION AND CERTAINLY
THAT'S A CONVERSATION THAT'S
HAPPENING SO THERE ARE NEW
MARKETS OPENING UP AS WE SPEAK --
RELATED TO THIS BUT THIS ISN'T
GONNA SOLVE FOR ALL.
MY LAST VOTE MISTER CHAIRMAN
THIS IS THE ONE THING I LIKE
ABOUT THE SENATE WE ACTUALLY GET
TO HAVE SOME DEBATE HERE.
THANK YOU MISTER CHAIRMAN.
WELCOME TO THE CONVERSATION.
IT COST ME A LOT EASIER TO TO TO
BE ABLE TO HAVE THAT
CONVERSATION.
THE MORE THE THE MORAL ISSUES
THE MORAL ISSUE HERE.
IS SOMEBODY PRAYED ON SOMEBODY'S
DOWNTRODDEN THAT'S WRONG.
BUT IT'S ALSO WRONG TO NOT TAKE
A CHANCE THAT SEMI HELP TAKE
SOME REST COULD TAKE A CHANCE ON
SOMEBODY.
WHO MAYBE HAVE A HIGH RISK SO MY
QUESTION SO I JUST WANT TO ASK?
FOR BECOME A SUPPORT YOUR BILL
TODAY.
BUT I ALSO AM VERY NERVOUS ABOUT
THE FACT THAT SOME OF THESE
PEOPLE ARE GOING TO BE OUT THERE
THAT ARE GOING TO BE ABLE TO
QUALIFY TO BE THERE BECAUSE THEY
ALWAYS GET TAKE THAT RISK ON A
BECAUSE YOU'VE CAP THAT WRIST.
SO WE SOMEWHERE HAVE TO FIGURE
OUT A HOW MANY OF THOSE ARE WE
GONNA FACT THIS IS THE GOOD
SENATOR SAID AND AND A ARE WE
REALLY DOING THE RIGHT THING.
ARE YOU KNOW.
WE MAY NOT BE MAYBE PUSHING A
LOT OF PEOPLE OUT THAT.
DIDN'T REALLY DO ART AND THEN
HAVE NO WAY TO REALLY BUILD
THEIR SELF OUT OF IT SO THAT'S
WHAT I WANT I I I WANT TO HELP
FIGURE THAT OUT I DON'T KNOW
WHAT IT LOOKS LIKE.
BUT IT'S A VERY BIG CONCERN TO
ME AND AND I SAID I I LOOK TO
YOUR BILL THAT I LOOKED AT IT
WHEN THE SIMPLY AS THE MORAL
ISSUE THE RIGHT THING TO DO
BECAUSE I DON'T THINK.
IT'S RIGHT. TO FOR ANYBODY TO
PREY ON ANYBODY ELSE BECAUSE OF
THEIR SITUATION.
AND IT HAPPENS EVERYDAY
UNFORTUNATELY.
BUT WE ALSO WANT TO GIVE PEOPLE
THE OPPORTUNITY OF MAYBE MADE
SOME BAD DECISIONS AND ARE
TRYING TO MOVE IN THE RIGHT
DIRECTION AND AND HAVE A ARE ARE
DOWN AND OUT THIS TO ME WILL
TKE A RISK ON HIM.
AND THAT RISK IS VERY HIGH
SOMETIMES SO WE NEED TO FIGURE
OUT IF HOW ME THOSE WERE LOSING
BY.
TAKING THIS ACTION WE CAN BE
PUSHING THOSE PEOPLE OUT.
AND WE WOULD AGREE THAT WE NEED
TO LOOK AT ALL THE INFORMATION
WE CRAFTED THIS BILL WE DID SO
BY OOKING AT INFORMATION
PRESENTED TO THE DB O. AND WE
WILL CONTINUE TO LOOK AT THAT --
I A DO YOU KNOW IF.
THERE'S A THINK.
THE OPPORTUNITY TO BETTER
ADDRESS YOUR QUESTION BY FOLKS
THAT DO TAKE A RISK ON MAKING
THESE LOANS ON THERE ARE PEOPLE
THAT ARE COMING IN -- WITH NO
CREDIT AT ALL THAT'S A RISK AND
THERE ARE PEOPLE WHO ARE GIVING
THEM.
LOANS AND SO I THINK THAT THAT'S
PART OF IT ADDITIONALLY IF YOU
WANT MORE INFORMATION ABOUT THE
ANCILLARY PRODUCTS I CAN.
PROVIDE THAT IS WELL I CAN DO
THAT NOW YOU TELL ME OKAY
[inaudible]
SENATOR ALSO [inaudible]
ORDER WOMAN.
YOU HAVE BEEN SEPARATED FROM OF
A PART OF THE LOAN. TWENTY FIVE
HUNDRED FIVE DOLLARS
[inaudible] TO PROVIDE
[inaudible]
CHILDREN.
HE DID NOT REALIZE A LOAN WITH
AN ANNUAL EFFECTIVE. 38%.
HE WAS OBLIGATED TO PAY FOURTEEN
THOUSAND DOLLARS.
WELL OVER FIVE TIMES.
THE AMOUNT OF HER ORIGINAL LOAN.
YOU KNOW -- I'D LISTEN TO NOT
ONLY THE TWO WITNESSES HERE
TODAY.
AND OTHERS I'VE OF SPENT MOST OF
MY LIFE NOT ALL MY LIFE.
IN OF LOW INCOME -- AROUND LOW
INCOME FAMILIES FROM FARMWORKERS
TO HOTEL WORKERS TO THE JANITORS
[inaudible]
AND WE SHOULDN'T BE HAVING THIS
CONVERSATION.
WHERE THEY'RE BEING TAKEN
ADVANTAGE OF?
OF ABOUT A WEEK AGO I WAS IN
ANOTHER COMMITTEE.
MEETING IN WHAT COMMITTEE
HEARING WHERE.
WE WERE DEBATING.
WHETHER OR NOT TO PROVIDE
PARKING LOTS FOR HOMELESS
STUDENTS.
AND EVERYONE WAS JUST AS
UNCOMFORTABLE.
VOTING FOR IT.
AS THEY WERE.
VOTING AGAINST IT OR STAYING OFF
OF IT.
BECAUSE WHO WANTS TO BE IN A
POSITION.
THIS ACT AS THE OF PROVIDING A
PARKING LOT.
WAS GOING TO SOLVE THE PROBLEM.
I MEAN THAT WAS.
IT WAS A TERRIBLE SITUATION TO
BE IN WHICH IS SIMILAR TO THIS
TODAY.
THE POVERTY IS THE REAL PROBLEM.
POVERTY IS A REAL PROBLEM WE'RE
JUST TRYING.
TO FIGURE OUT HOW.
TO MAKE IT -- LESS [inaudible]
PAINFUL.
WHEN YOU LIVE IN AND THAT KIND
OF POVERTY?
AND I THINK THAT'S WHAT.
SOME OF US ARE GRAPPLING WITH I
REALLY APPRECIATE THE CONCERN.
THAT HAS BEEN -- EXPRESSED --
FOR FAMILIES NOT BEING ABLE TO
HAVE ACCESS TO CAPITAL I I THINK
THAT'S THE EVEN WORSE SITUATION.
OF ALL.
BUT TO PREY ON THEM WHEN YOU
KNOW THAT THEIR ON ABLE TO PAY
THOSE AMOUNTS.
I THINK IT'S IT'S EVEN WORSE
[inaudible]
OF THE RISK IS HIGHER.
BUT IMAGINE THE RISK WHEN THE
PERCENTAGE RATE IS SO HIGH.
WHAT HOW COULD THAT POSSIBLY
MAKE IT AN EASIER RISK?
WHEN THE LENGTH OF THE LOANS IS
AN ISSUE THERE'S SO MANY THINGS
THAT MAKE THIS A RISK EVEN WORSE?
FOR THOSE THAT ARE TAKING THAT
OUT -- HUNDREDS OF MILLIONS OF
DOLLARS IN INTEREST RATES ARE
BEING PAID PRIMARILY BY.
PEOPLE OF COLOR.
PRIMARILY BY PEOPLE OF COLOR
[inaudible]
SO [inaudible]
I AM.
I'M HERE TO YOU KNOW EXPRESS ALL
THESE.
BIG CONCERNS BUT SADDENED THAT.
POOR PEOPLE ARE BEING TAKEN
ADVANTAGE OF IN ANOTHER WAY.
AND THAT SEEMS TO HAPPEN SO MUCH
ACROSS OUR COMMUNITIES THEIR
ALREADY POOR.
THEY ALREADY HAVE THESE
DISADVANTAGES AND TO TAKE
ADVANTAGE FURTHER ADVANTAGE IS
EVEN WORSE.
KIND OF REMINDS ME OF THE DEBATE
OVER WHETHER SMUGGLERS WHO BRING.
IMMIGRANTS ACROSS THE BORDER I
DO ENOUGH GOOD [inaudible]
OR NOT.
MAYBE IF YOU ASK SOMEBODY WHO'S
FACING DESPERATION IT'S A GOOD
THING.
THE CHARGING THEM.
ENORMOUS ENORMOUS AMOUNTS OF
MONEY.
TOTALLY TAKEN ADVANTAGE OF THEM.
SO THAT'S MY BIGGEST CONCERN
HERE NOW.
AND I HOPE THAT AS THE
LEGISLATURE.
WE CAN DO FAR MORE ABOUT THE
DESPERATION AND THE POVERTY THAT
FAMILIES ARE ARE GOING THROUGH --
SOME.
WE BE SUPPORTING YOUR BILL --
AND I'M ALSO SPEAKING AS VICE
CHAIR THE LATINO CAUCUS.
THIS IS A PRIORITY BILL FOR THE
LATINO CAUCUS SO.
THANK YOU FOR ALL YOUR WORK I
HAVE JUST ONE QUESTION I THINK
IT'S OF THE BUSINESSES THAT ARE
SUPPORTIVE OF YOUR BILL -- TO
ADDRESS THE THE ISSUE THAT HAS
BEEN RAISED SEVERAL TIMES.
ABOUT.
HOW IS IT THAT YOU COULD CHARGE
[inaudible]
MUCH LESS [inaudible]
AND STILL.
BE IN BUSINESS.
AND STILL PROVIDE THAT
OPPORTUNITY AND I WILL HAVE --
AS ROOM.
I THANK YOU FOR THE QUESTION --
FUNDAMENTALLY WE EACH HAVE.
A DIFFERENT APPROACH WE HAVE A
VERY DIVERSE SET OF BUSINESS
MODELS THAT WE APPLIED TO THE
LENDING THAT WE DO BUT AGAIN
FUNDAMENTALLY WE BELIEVE THAT
RIGOROUS UNDERWRITING
UNDERSTANDING.
NOT JUST A BORROWER SITUATION
BUT AND THEIR ABILITY TO REPAY
BUT WE ALSO LOOK AT A VERY
DETAILED BUDGET ON UNDERSTANDING
WHAT IS THE EXTENT TO WHICH
INCOME MATCHES UP WITH THE
COMMITMENTS THEY HAVE MADE.
AND WHEN YOU LOOK AT THE
DECISIONS THAT ARE MADE FOR THE
UNDERSERVED BORROWERS THAT CAN'T
BE SERVED BY THE TRADITIONAL
FINANCIAL INSTITUTIONS.
IT REALLY COMES DOWN THOSE
QUESTIONS -- THAT'S HOW WE LOOK
BEYOND THE CREDIT SCORE AND
FUNDAMENTALLY I'M WE CAN'T
APPROVE EVERYONE BUT I THINK.
IT LEAST WITHIN THE INSTALLMENT
SPACE -- THE LENDERS THAT ARE
OPPOSING THIS BILL ALSO CANCER
EVERYONE THERE ALSO DECLINED BAR
WAS TOO AND SO YOU LOOK AT THE
UNIVERSE OF FOLKS WHO WOULD BEEN
DISCUSSING TO GREAT LENGTH THE
FOLKS IT WILL STILL NEED TO BE
TAKEN CARE OF AFTER THIS BILL
COMES AND GOES.
REGARDLESS OF THE OUTCOME --
THOSE ARE FUNDAMENTALLY THE SAME
FOLKS THAT WERE ALL DECLINING
THAT NEED ADDITIONAL HELP -- SO
THAT'S PROBABLY RESPONSIVE TO
YOUR QUESTION HAPPEN TO ANSWER
ANY OTHERS.
THANK YOU MISTER THANK YOU.
CAN RECOVER YOUR MATCH MISTER
CHAIR -- LET ME START OFF BY
SAYING THAT -- I PROBABLY SPENT
MORE TIME ON THIS BILL.
IN THE PAST COUPLE WEEKS THEN ON
THE WORK ON MY OWN BILLS -- I'VE
I'VE RECEIVED HUNDREDS OF
LETTERS FOR THE BILL.
AND I BREEZED RECEIVED HUNDREDS
OF LETTERS ME WITHOUT BOXES IN
OUR OFFICE AGAINST AGAINST IT.
AND WE'VE TALKED ABOUT THIS MY
BIGGEST ISSUE IS ACT ACCESS TO
CAPITAL WHICH IS THE UNBANKED
INDIVIDUALS WHICH ARE THE 57% OF
THE PEOPLE THAT APPLY IN EVERY
AND CAN GET CREDIT -- AND AND IT
IT'S NOT YOU KNOW SOME OF IT IS
BECAUSE PEOPLE ARE LOW INCOME
BUT SOME OF IT IS JUST -- THAT
WE HAVE A VERY PERVERSE SYSTEM
OF CREDIT IN THIS COUNTRY.
I'M YOU GET NO CREDIT IF YOU
HAVE MONEY IN THE BANK.
YOU DON'T HAVE A FICUS CARE IF
YOU HAVE MONEY IN THE BANK.
AND AND SO FOR FOR PEOPLE THAT
ARE USED TO IF YOU DON'T HAVE.
IF YOU DON'T HAVE MONEY YOU CAN
AFFORD IT -- THEY DON'T HAVE
GOOD CREDIT SCORES AND SO THESE
EMERGENCIES THAT HAPPEN ON AT
HAPPENED AT THE LEAST.
AT THE LEAST CONVENIENT TIME AND
SO WE HAVE INDIVIDUALS THAT HAVE
NO OR LOW FICUS COURTS WE HAVE
INDIVIDUALS WHO LOST THEIR HOME
DURING THE MORTGAGE DOWNTURN --
AND HAVEN'T BEEN ABLE TO GET
THEMSELVES BACK ON THEIR FEET.
WE HAVE -- PEOPLE THAT WERE
UNINSURED AND A MEDICAL BILL --
A BABY BEING BORN IN THE FAMILY
PUT SOME BEHIND THE EIGHT BALL.
AND SO -- SO THAT'S BEEN PART OF
PART OF WHY I'VE I'VE REALLY
BEEN STUDYING THIS IS -- IS THAT
WE DO HAVE A COMPLEX FRAMEWORK.
RIGHT NOW WHERE WHERE IF YOU IF
YOU CHANGE SOMETHING.
IT HAS UNINTENDED CONSEQUENCES
DOWN THE ROAD AND SO SO I WANNA
TALK A LITTLE BIT I'M IN I'M IN
A SUPPORT THE BILL TODAY BECAUSE
I I DON'T.
I IT IS IT IS ONE SOLUTION.
BUT I'M I'M I'M WITH MY
COLLEAGUES HERE -- THERE NEEDS
TO BE MULTIPLE SOLUTIONS AND I
EXPECT THAT WE'LL SEE OTHER
BILLS COME THROUGH THAT PROVIDE.
AN OPPORTUNITY FOR US TO DO TRY
SOME DIFFERENT -- PILOT PROJECTS
TAKING THE CAP OFF.
NOT TAKING THE THAT THE TOP THE
SUNSET DATE OFF THE PILOT
PROGRAM THAT EXISTS RIGHT NOW
WOULD DO WHAT WE DO ONE THING
THAT WOULD BE GOOD AND PROBABLY
START TO PROVIDE AN OPPORTUNITY.
FOR LENDING -- THAT THIS BILL
BUT MOM PROVIDE -- BUT I BUT I
WILL I'D WHAT I'D LIKE IS I LIKE
THE INTEREST RATE CAPS.
I LIKE THE NO PREPAYMENT PAYMENT
PENALTY THE LENGTH OF THE LOAN
IS REAL IMPORTANT THE THE
ADMINISTRATIVE P..
FEES THAT ARE PART OF THE
INTEREST RATE CAP BY I THINK
WORKS REALLY WELL AND THEN THE
AMENDMENTS THAT ARE LISTED IN
THE IN THE REPORT ON PAGE NINE
AND TEN I I APPRECIATE YOU YOU
TAKING THOSE.
THOSE AMENDMENTS -- WHAT I'M
CONCERNED ABOUT AS AND I
CONTINUE TO BE CONCERNED ABOUT
ACCESS TO CREDIT?
AND PARTICULARLY IN THE
COMMUNITIES OF COLOR AND IT'S
INTERESTING BECAUSE WE HAVE THE
HISPANIC CHAMBER OF COMMERCE IN
THE BLACK CHAMBER OF COMMERCE
THAT ARE.
OPPOSED TO THE BILL BECAUSE THEY
FEEL THAT -- THAT THIS IS GOING
TO HURT THEM COMMUNITIES OF
COLOR AND AND WE HAVE OTHER
ORGANIZATIONS THAT DON'T DON'T
BELIEVE THAT'S GOING TO HAPPEN
SO I THINK WE HAVE A LOT OF WORK
TO DO IN THAT REGARD -- I'M
CONCERNED ABOUT THE ANSEL THE
ANCILLARY SERVICES -- THEY
INCREASE THE COST OF LOANS --
LIKE CREDIT INSURANCE
UNEMPLOYMENT INSURANCE
PREPAYMENT PENALTY SERVICES
SERVICE FEES THAT ARE NOT
INCLUDED IN THE INTEREST CHARGES
I THINK ALL OF THOSE ARE ARE
THINGS WE'VE GOT A LOOK AT IT.
AND AND CONSUMER PROTECTIONS
THAT REALLY -- ASSISTA
[inaudible]
CONSUMERS. TO TO MAKE GOOD
CHOICES AND I AND I JUST WANT TO
SAY THAT ONE OF THE RASONS THIS
IS PARTICULARLY HARD FOR ME IS
THAT.
I'VE HAD FAMILY MEMBERS THAT
HAVE USED -- PAYDAY LENDERS
PRETTY PRETTY REGULARLY.
AND IT'S IT'S IT'S A PERSONAL
CHOICE IT'S THEIR CHOICE AND
THEY AND I'VE I'VE TRIED TO HELP
THEM GET CREDIT AND TO DO --
THINGS AND AND FRANKLY THEY'RE
ADULTS AND THEY IT'S YOU KNOW
LET ME HANDLE MY OWN AFFAIRS AND
AND THIS IS HOW I WANT.
TO HOW I WANT TO ORGANIZE MY
LIFE AND SO I RESPECT I REALLY
RESPECT THAT IN AND RECOGNIZE
THAT -- THAT.
NOT EVERYBODY SEES THE WORLD THE
SAME AND SO I WANNA -- I JUST
WANT TO MAKE SURE THAT THAT
WHATEVER WE DO IN THIS SPACE IN
CALIFORNIA THAT WERE TRYING THAT
WERE CREATING AN OPPORTUNITY.
FOR THE MAXIMUM NUMBER OF PEOPLE
TO GET LOANS.
REGARDLESS OF THEIR FINANCIAL
SITUATION AND THAT THAT THOSE
LOANS ARE ARE -- IF THEY HAVE
THE INFORMATION THAT THEY NEED
TO MAKE THE DECISION AND THAT --
THAT THEY IT'S IT'S THEIR CHOICE
IT'S GOOD GOOD CONSUMER SEXO SO
THERE WAS A PREDICTION. ONE OF
YOUR WITNESSES SAID.
WE WE BELIEVE WE'RE GOING TO
HAVE MORE CONSUMER CHOICE WITH
THIS AND I'M.
THAT'S READ THE REASON I'M GOING
TO SUPPORT IT -- BUT I DO WANT
TO MAKE AND I DO WANT TO MAKE
SURE THAT WHATEVER WE'RE DOING.
CREATES A A DIVERSE REGULATED
MARKET.
BECAUSE JUST HAVING ONE OR TWO
PROJECTS DOESN'T GET US TO THEIR
TO THE TESTIMONY HERE TODAY
WHICH IS THAT WE NEED.
WE NEED -- WE NEED AS MANY
OPTIONS AS POSSIBLE SO PEOPLE
CAN CAN MAKE CHOICES.
THOUGH.
THAT'S KIND OF WHERE I LIVE I
HAVE A QUESTION I JUST WANTED TO
LET YOU KNOW THAT I'M I'M I'M
SUPPORTING IT TODAY I AM GONNA
CONTINUE TO TO STUDY THE ISSUE
AND TALK TO SOME OF THAT -- SOME
OF THE OTHER OTHER -- PRODUCTS
AND AND I EXPECT THAT WE'RE NOT
DONE WITH THE WHOLE TOPIC THAT
THERE WILL BE OTHER THINGS THAT
WOULD BE.
PROPOSAL [inaudible]
THANK YOU [inaudible]
CENTER PORTANTINO.
THE DOLLAR ANOTHER THING ABOUT
THE SENATE EVERYBODY SPEAKS
[inaudible]
A START AT A LITTLE LIGHT NOW
BUT I THINK ONE OF THE REASONS
WHY WE'RE ALL.
UP HERE AND WHY THIS ISSUE IS IS
WHAT IT IS AND HOW IMPORTANT IS.
IS BECAUSE IT HAS THOSE TWO
SITES.
YOU KNOW THERE ARE PEOPLE WHO
ARE VICTIMS OF PREDATORS WHO.
TAKE LOANS THAT THEY SHOULDN'T
WHO SPEND.
THEIR LIFE SAVINGS AND END UP.
DEFAULTING.
AND THEN THERE ARE PEOPLE WHO
NEED THAT [inaudible]
LAST MINUTE.
LOAN TO GET THROUGH THAT WEEK --
AND I THINK THAT'S WHERE THAT'S
WHERE.
WE'RE ALL TRYING TO DRAW THAT
LINE IS HOW DO YOU PROTECT THE
CONSUMER.
BUT ALSO PROVIDE A SPACE FOR
THAT PERSON WHO DESPERATELY
NEEDS THAT ONE TIME [inaudible]
CASH -- I CAN'T TELL I MY OWN
SINGLE MOM WHEN I WAS A KID WAS
IN THAT SITUATION ONCE AND HAD.
TO HAD TO GO TO A PLACE IN AND
PAY AN EXORBITANT AMOUNT OF
INTEREST BUT IT WAS A WEEK WHERE
SHE NEED.
TO AND SO -- I HAVE A FEELING
OVER THE NEXT MONTH I'M GONNA BE.
HEARING A LOT ABOUT THIS BILL.
AS IT MOVES OUT OF THIS
COMMITTEE -- OBVIOUSLY I'M GONNA
SUPPORTED TODAY -- BUT I THINK
THAT'S WHERE THE STRUGGLE IS IS
HOW DO WE PROTECT SOMEBODY.
ON BOTH ENDS OF THIS
CONVERSATION.
AND I THINK THIS BILL IS A IS A
STEP IN THE RIGHT DIRECTION TO
TO DEAL WITH ONE HALF OF THAT
CONVERSATION AS MY COLLEAGUES
HAVE MENTIONED.
WE HAVE TO MAKE SURE THAT THE
MARKET IS THERE TO PICK UP THE
OTHER HALF OF THAT CONVERSATION
SO I LOOK FORWARD TO TALKING
WITH THE AUTHORS.
AS THIS BILL PROGRESSES OUT OF
COMMITTEE AND I THINK THIS IS A
REALLY IMPORTANT CONVERSATION TO
HAVE TODAY -- FOR ALL SIDES
THANK YOU [inaudible]
BOB.
I DO HAVE A QUESTION TAKING
ADVANTAGE AFFECTED THE BILL'S
GOING TO PASS MAYBE.
SOMETHING THAT I WORKED ON IN
THE PAST OF THE ASKING YOU FEW
WILLING TO ADD SOMETHING YOUR
BILL.
I I I RUN A BILL TO EXTEND THE
PILOT PROGRAM I TRIED EXTENDED
PERMANENTLY SINCE WE HAD ALREADY
STUDIED AT AND THAT.
WAS -- SHOT DOWN RECENTLY WITH
ACCESS ACTUALLY INCREASED LIMIT
BUT THIS WILL REALLY HELP.
IN CONJUNCTION WITH THIS TO GET
THAT PROGRAM MORE AVAILABLE TO
PEOPLE THAT ARE.
IN THIS CATEGORY IN WOULD YOU BE
WILLING TO MEND YOUR BILL. TO TO
UNDO THAT -- THE SUNSET ON THAT
PROGRAM SO I JUST AT WE HAD A
DIFFERENT QUESTION FROM CENTER
AT CHIANG ABOUT KEEPING MY BILL
FOCUS TO WHERE IT IS AND I HAVE
COMMITTED TO KEEPING MY BILL
FOCUS TO WHERE IT IS.
SO I WILL NOT BE ADDING ANY NEW
PRODUCTS AND SO I THINK -- IT AS
THE CONVERSATION GOES.
THIS IS GOING THIS THIS IS NOT.
THE END THIS CONVERSATION WILL
CONTINUE -- THAT AND I THINK
THAT THE CONVERSATION RELATED TO
THE PILOT PROGRAMS TO EMERGING
MARKETS TO NEW MARKETS WILL.
BE PART OF WHAT WE WILL ALL.
YOU KNOW ESPECIALLY AS MEMBERS
OF MAKING COMMITTEES CONTINUE TO
TRY TO DIVE INTO THIS IS THERE
WILL BE OTHER BILLS AT A NO NEXT
YEAR -- BY DIFFERENT AUTHORS BY
DIFFERENT FOLKS THAT WILL
GENERATE THE CONVERSATION AND
CERTAINLY THE PILOT PROGRAM HAS
BEEN VERY IMPORTANT PART OF THIS
PIECE -- AND I AM SUPPORTIVE OF
THE PROGRAM -- THIS BILL AS I'VE
MADE THE COMMITMENT WILL STICK
TO THIS PRODUCT IN THIS PRODUCT
ONLY OCCUR PRITCHETT.
THANK YOU ANY ADDITIONAL
QUESTIONS OR COMMENTS BY
COMMITTEE SEEN HEARNG.
NINE I WOULD JUST LIKE TO ADD MY
VOICE TO THE DISCUSSION AND I
THINK WE'VE HEARD FROM BOTH
SIDES AND IT'S BEEN A
DISPASSIONATE DISCUSSION WHERE
WE ARE TODAY.
BUT I FEEL WE'RE HERE TODAY NOT
BECAUSE OF PREDATORY LENDING.
I THINK WE'RE HERE TODAY BECAUSE
THERE ARE THREE MILLION UNBANKED.
CALIFORNIANS WHO ARE NOT BEING
SERVED BY TRADITIONAL
INSTITUTIONS.
AND IT'S BEEN A GROWTH OF THIS
MARKET.
AND IT'S BY NEED AND AND AND AND
DESIRE THAT YOU KNOW CONSUMER
DEMAND THAT SOMEONE HAD TO
SERVICES PROP -- THE THE SPACE
AND WE HAVEN'T BEEN SERVICING AT
OR YOU WOULDN'T HAVE THE NUMBER
PEOPLE WHO ARE UNBANKED.
BUT THE REALITY TO IF THOSE WHO
ARE BANG.
AND THEY NEEDED A LOAN TO DAY OF
TWO THOUSAND DOLLARS OR MORE
THEY COULDN'T GET IT.
THAT'S THE REALITY.
THAT'S THE REALITY OF WHERE WE
ARE TODAY SHOW I TOO AM VERY
CONCERNED ABOUT ACCESS.
TO CAPITAL I AM CONCERNED ABOUT.
YOU KNOW -- ONE'S ABILITY -- TO
PROVIDE FOR THEMSELVES TO MAKE
DECISIONS ON THEIR OWN BUT I
ALSO RESPECTFUL OF THE WORK THAT
THE SIMPLY WOMAN A LOW MOAN ND
A SOME WOMEN GRATION HAS DONE
AND IT'S BECAUSE OF YOUR
CREDIBILITY.
THAT I HAVE MADE A
RECOMMENDATION TO PASS THE BILL
BUT AGAIN AS YOU'VE HEARD FROM
MY COLLEAGUES.
THIS IS NOT THE PERFECT ANSWER
IT'S FAR FROM IT.
AND WHEN WE ONLY LOOK AT
INTEREST RATES AS A WAY TO SOLVE.
WORKING FOLKS NOT JUST POOR
FOLKS PROBLEMS WE'RE NOT LOOKING
AT THE THE BIG PICTURE BECAUSE
IT'S MORE THAN INTEREST RATES
THAT ARE BE.
OF MALL TEAR IT'S AGAIN ACCESS
TO CAPITAL.
THE TO NEED THAT'S NOT BEING
SERVICED BY.
THE MEMBER AND WHATEVER ENTITY
THAT USED TO PROVIDE IN THIS
SPACE BUT ALSO WHEN WE LOOK AT
FEES LET'S NOT LET'S LOOK AT IT
IN THIS MARKET AS WELL WE LET'S
LOOK AT MAKING FEES AS WELL.
BECAUSE OF YOU BOUNCE A TWENTY
FIVE DOLLAR CHECK.
BECAUSE YOU'RE TWO DOLLARS SHORT.
YOU PAY THIRTY FIVE DOLLARS FOR
THAT TWO DOLLARS SHORTAGE.
THAT'S FOUR DIGITS.
SO LET'S BE HONEST ABOUT WHAT
WE'RE CONCERNED ABOUT WHEN WE
TALK ABOUT CONSUMER PROTECTION
WE NEED TO LOOK AT ALL THE ENDS
AND THAT'S PROBABLY WHY WE HAVE
A LITTLE HESITATION YEAR.
THE DAY BUT WE KNOW THAT THE
INTENTIONS ARE A WELL I
APPRECIATE YOU TAKING THE TWO
AMENDMENTS THAT WE BROUGHT FORTH
BECAUSE IF IT'S ABOUT CONSUMER
PROTECTION CHAU WE SHOULD MAKE
SURE CONSUMERS ARE PROTECTED SO.
I WILL STATE THE FIRST.
OF A LOOSE BALL FOR A MOMENT --
THE MEMORY JUST FALLS IT WILL
REQUIRE LENDERS.
SUBJECT TO THIS BILL'S
PROVISIONS TO REPORT BORROW
PAYMENT PERFORMANCES TO ALL TOO
WELL TO A MAJOR CREDIT BUREAU.
NOT ENTERED OUR TALKED
ALTERNATIVE I'M SORRY I CAN'T
TALK TODAY CREDIT BUREAU.
BUT A MAJOR CREDIT BUREAU.
I WANT TO SEE SUCCESSFUL BARS
REWARDED FOR THEIR EFFORTS WITH
AN INCREASE.
CAN THEIR CREDIT SCORES WHICH
CREDIT CARD ISSUERS AND MORTGAGE
COMPANIES LOOK FOR SO THAT'S OUR
COMMITMENT THERE AS FAR AS
REPORTING IT WILL REQUIRE
LENDERS.
SUBJECT TO THIS BILL'S PROVISION
TO OFFER BORROWERS CREDIT
EDUCATION BEFORE THEY DISPERSE
ALONE PROCEEDS.
AND REQUIRE THIS CREDIT
EDUCATION TO COVER SERIES A
CREDIT SCORE RELATED TOPICS.
AGAIN WE KNOW THAT CREDIT
EDUCATION IT'S PAST TASK TO
PROVIDE CONSUMERS WITH TIMELY
AND RELEVANT INFORMATION.
IF IS GOING TO BE EFFECTIVE IT
CAN'T I CAN'T THINK OF ANYTHING
MORE TIMELY AND RELEVANT TO A
BAR THAN TAKING OUT. ONE OF
THESE LOANS THEN INFORMATION
ABOUT THE VALUE OF CREDIT SCORE
ITEMS AT IMPACT THEIR CREDIT
SCORES AND HOW THE DISPUTE --
ITEM ON THEIR CREDIT REPORTS SO
THOSE ARE IMPORTANT.
SO YES WE'RE HERE TODAY AND AS
WE'VE HEARD THERE ARE SOME OTHER
ISSUES THAT HAVEN'T BEEN
ADDRESSED AND I WOULD JUST STATE
BILLS.
YOUR BILL DOESN'T A DOES -- DOES
NOT PROHIBIT LENDERS FROM
SELLING BARS.
ANCILLARY PRODUCTS AS BEEN
MENTIONED AS CONCERNED IT IS NOT
REQUIRED THE COSTS OF THOSE
ANCILLARY.
ON INSURANCE TO FIT UNDER THE
THIRTY EIGHT POINT FOUR CAP.
ON AND WE'RE NOT ADDRESSING THE
NEEDS OF BORROWERS WHO WANT TO
BORROW LESS THAN TWENTY FIVE
HUNDRED BECAUSE ALSO I'VE HAD
PLENTY FOLKS WHO'VE COME INTO MY
OFFICE.
AND SAID I NEEDED A THOUSAND
DOLLARS BUT BECAUSE OF THIS FOR
START TO TWENTY FIVE HUNDRED I
BORROW TWENTY FIVE ARGUED I'D
MEASLY PAY BACK.
THE FIFTEEN AND I KERRY THE
BALANCE ON THE ONE THOUSAND WHAT
LET'S LOOK AT WARNER FLOOR TO I
MEAN BECAUSE THAT'S WHERE THE
GREATEST.
HOLE IS THAT'S WHERE THE
MAJORITY OF BORROWS THEY NEED
ABOUT A THOUSAND DOLLARS TO
FIFTEEN HUNDRED MAJORITY OF OF
COMING OF MY OFFICES I DON'T
NEED TWENTY FIVE WHEN YOU BUT I
TAKE IT IN ORDER.
TO BECAUSE I CAN'T GET ANYTHING
ELSE.
ABOVE FIVE HUNDRED AND TWENTY
FIVE HUNDRED SO WE HAVE TO
ADDRESS THAT SPACES WHILE.
I MEAN AND THAT'S THAT'S REAL
AND AND AGAIN.
WE HAVE TO LOOK AT AGAIN TALKING
TO ALL INSTITUTIONS OF LENDING
AND GETTING EVERYBODY AT THE
TABLE.
BECAUSE WE SHOULD HAVE THREE
MILLION PLUS CALIFORNIANS WITH
NO ACCESS.
TO TRADITIONAL BANKING OR CREDIT
OR WHEN IT WORK WHATEVER THAT
MIGHT BE.
NOW WE MUST DO A BETTER JOB ON
AT ADDRESSING THOSE.
REAL HARD REALITY SO.
THAT'S WHERE I AM WITH THAT --
YOU ACCEPTED THE THOSE TWO
MOMENTS THAT WE'VE DESCRIBED AND
I HOPE YOU MAKE A COMMITMENT
THAT AGAIN -- AS HIS BOWL BILL
MOST FOR THAT.
THERE WILL NOT BE ANY ADDITIONAL
ADD ONS THAT.
HAVEN'T BEEN AGREED UPON ON THIS --
BY THIS COMMITTEE OF SO WE
RESERVE THE RIGHT TO BRING IT
BACK TO THIS COMMITTEE AND DEAL
WITH IT ACCORDINGLY SO.
THAT OUR UNDERSTANDING I THINK A
REPEATED IT A FEW TIMES YEAH.
I JUST I APPRECIATED BUT WE JUST
LIKE TO BE CLEAR SO -- AGAIN --
OKAY I APPRECIATED SO WOULD YOU
LIKE TO CLOSE.
BOB BEFORE CLOSING STATEMENTS
FROM MY COLLEAGUE JOINT AUTHORED
ASSEMBLY MEMBER LOW MOAN.
I WANTED TO STATE JUST REITERATE
ONCE MORE THAT -- THIS BILL WAS
NEVER PROMOTED OR BROUGHT
FORWARD AS THE FIX ALL TO THE TO
THE LENDING ISSUES THAT WE'RE
FACING -- NATIONALLY AND AND
ALSO IN OUR STATE OF THE STATE
OF CALIFORNIA I THINK WHAT WE
FOR TODAY.
OUR CONCERNS FROM SENATORS
COMMITTEE MEMBERS.
OF THIS COMMITTEE THAT HAVE --
THAT EXPRESS YOUR CONCERNS IN
SUCH A WAY THAT IS HOPE MANY OF
US TO LEARN THAT THERE THOSE
CONCERNS CAN TURN INTO GREAT
IDEAS FOR ADDITIONAL BILLS.
THAT -- TURN INTO A SERIES OF
BILLS THAT ADDRESS THE PROBLEM
HOLISTICALLY AND WHAT WE HAVE
DONE WAS WE'VE PICKED A NICHE.
AN AREA THAT WE CAN START WITH
THAT OTHERS CAN LEARN HOW TO
MOVE OTHER IDEAS THROUGH AND
OTHER IDEAS FORWARD.
MISTER CHAIRMAN I WANT TO THANK
YOU AND THE COMMITTEE STAFF --
FOR IN PARTICULAR ONE OF THE
AMENDMENTS.
THAT -- REALLY I BELIEVE WILL BE
VERY VERY HELPFUL AND UPWARD
MOBILITY AND HELPING PEOPLE TO
GRADUATE FROM SUB PRIME IT TO
PRIME.
AND YOU WE TALK ABOUT ACCESS ONE
OF THE GREATEST AREAS OR WAYS TO
CREATE ACCESS IS TO MAKE SURE WE
DON'T CREATE A POOL OF SUBPRIME
WHERE SOMEONE STAYS THERE.
BUT THE IT BECOMES THE
OPPORTUNITY IN A STEPPING STONE
TO GO FROM SUB PRIME TO PRIME
CREATING THAT OPEN SPOT FOR
OTHERS TO MOVE IN SO WITH THAT
AMENDMENT I THINK THAT'S PART OF
ANOTHER -- ANSWER AND THE
SOLUTION TO A BIGGER PROBLEM
THAT ALL OF US WANT TO SEE
EVENTUALLY RESOLVED THAT CAN'T
BE DONE WITH ONE SINGLE BILL SO
THANK YOU FOR THAT AND CLOSE EXT.
THANK YOU AND I I ALSO WANT TO
THANK THE CHAIR AT AND THE
COMMITTEE STAFF AND ALL THE
MEMBERS MANY OF YOU HAVE SAID
THAT YOU'VE NOT BEEN LOBBIED.
ON A BILL AS MUCH AS THIS BILL --
AND YOU SAID WHETHER IT WAS YOUR
OWN WITH YOUR TEN YEARS
EXPERIENCE THIS BILL IS
CERTAINLY MOVING THE NEEDLE AND
IT'S HARD IT HAS EQUALLY BEEN
HARD FOR ME AS THE AUTHOR -- IN
THIS IS BEEN A VERY DIFFICULT
ISSUE AND THE NO WAY ALL OF THE
THINGS THAT WERE TAKING NEEDED
TODAY THAT ARE ISSUES THAT WE
CONTINUE TO NEED TO WORK ON THE
EN BANC.
ACCESS TO CAPITAL BOTH IN
TRADITIONAL AND NONTRADITIONAL
FORMS FINANCIAL LITERACY AXIS
TOOK A BUILDING CREDIT -- THE
EMERGING MARKETS ALL OF THOSE
ARE PART OF A GREATER
CONVERSATION THIS BILL FROM THE
BEGINNING WAS ABOUT A RATE CAP.
AND WE UNDERSTOOD THAT IT
WOULDN'T ADDRESS ALL OF THOSE
BUT I HOPE THAT AS IN THESE THIS
CONVERSATION HAS COME FORWARD AS
EVERYONE.
AND HAS IN IN SOMEWHERE OTHER
EXPRESSED THAT THERE IS MORE TO
DO THAT WE CAN CONTINUE TO HAVE
THESE CONVERSATIONS IN THE
COMING YEARS ABOUT WHAT WE DO TO
ADDRESS THE OTHER ELEMENTS.
THAT ARE PART OF A BIGGER
CONVERSATION -- I THINK THAT
THAT WILL BE IMPORTANT FOR ME IT
WAS NEVER ABOUT EIGHTEEN ONE
SIDE OR THE OTHER IT WAS TRYING
TO UNDERSTAND HOW WE ADDRESS THE
FACT THAT TWENTY THOUSAND
CALIFORNIANS LOSE THEIR CAR A
YEAR BECAUSE OF THIS PRODUCT.
THAT NEARLY 40% GO INTO
COLLECTIONS BECAUSE OF THIS
PRODUCT -- THAT IS WHERE WE
TRIED TO GO WITH THIS BILL AND
WE UNDERSTOOD THAT FOR US FOR
THIS PERSPECTIVE WE NEEDED A
RATE CAPS.
GETTING TO THAT NUMBER HAS BEEN
UNBELIEVABLY DIFFICULT LOTS HAS
BEEN PROPOSED -- AND SO I THINK
WHEN I HEAR FOLKS THAT SAY WELL
WE WERE INVITED TO THE TABLE
EVERYBODY WAS INVITED TO THE
TABLE BUT IT WAS A RATE CAPS
BILL AND IF YOU WEREN'T WILLING
TO HAVE A CONVERSATION ABOUT A
RATE CAPS.
THEN YOU'RE RIGHT PEOPLE CHOSE
NOT TO BE AT THE TABLE -- THIS
BILL WASN'T ABOUT SOMETHING ELSE
AND I THINK.
THE AMENDMENTS CONTINUED TO MOVE
IT FORWARD IN A WAY THAT KEEPS
THE INTEGRITY OF THE BILL --
INTACT -- AND SO I HOPE THAT WE
WILL.
LOOK AT WHAT THE FUTURE HOLDS
FOR THE FINANCIAL MARKETS AND WE
WHAT WE HIGH HOPE THAT WE WILL
LOOK AT HOW WE CONTINUE TO SERVE
THE MOST UNDERSERVED IN THE
STATE -- I THINK YOU FOR ALL THE
FOUGHT.
ALL THE TIME THAT YOU HAVE ALL
PUT INTO DELIBERATING THIS ISSUE
IT HAS NOT BEEN EASY -- AND I
THINK YOU FOR YOUR SUPPORT TODAY
I I JUST WANT CLAIFICATION
WE'RE NOT DEALING WITH TITLE
LOANS YEARS SO I'M JUST CURIOUS
ON HOW -- BARS A BLASTER CARD
USING THIS PRODUCT MOST OF THE
TITLE LOANS ARE IT WITHIN THE
TOP 250-021-0000 DOLLARS SPACE
YEAH BUT OKAY.
BUT WE WEREN'T DEALING WITH
THOSE SO IT KIND OF MONIES TO
WATER AND OUT TO A LOT OF FOLKS
ARE CONFUSED ABOUT ALSO BECAUSE
YEAH BUT ANYWAY [inaudible]
OUR MA'AM SECTOR PLEASE CALL THE
ROLL.
MOTION IS TO PASS AS AMENDED TO
JUDICIARY SENATOR BRADFORD ART.
I CHIANG.
CHING I GOT A YELLOW.
I DELI.
DELI I DURAZO.
RATHER I WEST SO [inaudible]
PORTANTINO [inaudible]
PORTANTINO I'D.
YOUR MEASURE IS OUT TO
CONGRATULATE -- YES CAN YOU WE
REFRAIN FROM DISPLAYS OF
JUBILATION OR SADNESS.
CAN WE LIFT THE CALL FOR APPS A
MEMBER ON ITE.
NUMBER ONE I MEAN NOT ITEM
NUMBER.
TWO ITEM THREE I'M SORRY.
NINE FORTY FIVE ASSEMBLY BILL
NINE FORTY FIVE MOTION IS DO
PASS AS AMENDED TO THE FLOOR
SENATOR WEST SO.
FEDERAL SL HI.
AT SEVEN THAT MEASURE IS OUT.
AND IF YOU COULD.
I KNOW WERE. TWO CAN YOU KEEP IT
DOWN WE'RE STILL TRYING TO JUST
CONCLUDE OUR BUSINESS SO I WANT
TO THANK ALL THE COMMITTEE
MEMBERS FOR YOUR DAD.
ATTENTION HERE TO DâN YOUR
DEBATE ON THIS ISSUE.
AND THAT CONCLUDES THE BUSINESS
OF THE BANKING AND FINANCIAL
INSTITUTIONS WE STAND ADJOURNED