Consumer Group Issues Statement in Response to Hearing on CA Assembly Bill 539

April 1, 2019

Statement by Gerard Scimeca, Vice President, Consumer Action for a Strong Economy (CASE)
in Response to Today’s Hearing on CA Assembly Bill 539

“This legislation is anything but consumer friendly, because any time government tries to intervene in the market by mandating prices, the result is almost always higher costs and fewer choices for consumers. In this case, we are talking about California’s most financially vulnerable and those in a financial pinch who occasionally rely on short-term, small dollar loans to make ends meet. This bill will cut off access to safe and reliable credit options for these consumers. Additionally, it will lead to the closure of many lenders, which would force consumers to turn to unscrupulous outfits where they will end up paying more. At a time when most Americans are living paycheck to paycheck, legislators should be doing more to ensure that consumers are not put under additional financial stress. I urge legislators to carefully consider the disastrous economic consequences that will result if this misguided legislation comes to pass.”  

CASE is the nation’s foremost non-profit, non-partisan organization devoted to the singular cause of promoting consumer interests through the advancement of free-market principles. For more information, visit: https://caseforconsumers.org/