Mary Jackson, CEO of the Online Lenders Alliance: “This reckless rate cap will hurt Californians supporters of the bill would like to protect.”
ARLINGTON, Virginia (PRWEB) October 11, 2019
Following yesterday’s signing of AB539, legislation that limits interest rates on installment loans in the state of California, Mary Jackson, CEO of Online Lenders Alliance, issued the following statement:
“With the stroke of a pen, California has created uncertainty and hardship for residents of the state most in need of access to credit, facing unforeseen emergencies, or looking to fund more expensive debts with an installment loan. Many unbiased economic studies, including those of the World Bank and the Federal Reserve, collectively agree that rate caps such as the one just enacted have unintended negative consequences.
In practice, this reckless rate cap will hurt the very Californians that supporters of the bill would like to protect. It will restrict access to safe and trustworthy credit products, forcing lenders to deny credit to those who In addition, this legislation also leads borrowers to a handful of politically linked lenders who offer loans with expensive add-ons that most borrowers don’t want or need.The cost of credit is obscured.
“Unfortunately, Californians now run the risk of incurring higher loan fees, reduced price transparency, reduced number of available lenders and reduced market competition, and being forced into overdrafts.” and late fees. With this law, California chose the winners. and the losers – and California consumers lost. “
About the Alliance of Online Lenders
The Alliance of Online Lenders (OLA) is the lending, technology and innovation hub representing the burgeoning online lending industry. OLA members adhere to a list of best practices and a code of conduct to ensure clients are fully informed and treated fairly. OLA member companies are some of the most innovative fintech companies, committed to the highest standards of conduct, ensuring the best possible experience for their customers, and fully complying with federal law.
For the original version on PRWeb, visit: https://www.prweb.com/releases/statement_from_online_lenders_alliance_ceo_mary_jackson_on_california_governor_newsom_s_signing_of_installment_loan_interest_rate_cap_bill/prweb16643231.htm