BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA
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RESOLUTION IN OPPOSITION TO ASSEMBLY BILL 1158 (CALDERON), DEFERRED DEPOSIT TRANSACTIONS
RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that
WHEREAS, current state law prohibits payday lenders from loaning more than $300 per transaction, which includes the fee assessed for the loan; and
WHEREAS, borrowers will be charged approximately $75 in fees for a $500 loan; and
WHEREAS, an individual in California may obtain multiple payday loans at the same time, as long as each loan is obtained from a different licensee; and
WHEREAS, payday lenders are disproportionately concentrated in predominantly low-income African American and Latino neighborhoods; and
WHEREAS, studies have shown that too many consumers are caught in a debt trap because of the exorbitant interest rates and additional finance charges and that many borrowers are forced to go to many payday lenders and take out multiple payday loans simultaneously to pay back other payday loans; and
WHEREAS, according to the Department of Corporations there are approximately 24 payday lending establishments in the County of San Mateo; and
WHEREAS, the Center for Responsible Lending, a consumer and research and advocacy organization, has found that on average each payday lending establishment collects $252,840 in fees per store resulting in approximately $6 million in payday lending fees assessed to San Mateo County residents.
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board of Supervisors by the adoption of this resolution hereby opposes Assembly Bill 1158 (Calderon) regarding deferred deposit transactions.
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