Recommendation to request City Attorney to draft a resolution in support of the Safe Consumer Lending Act (AB 2500).
Motion carries. Thank you. Number 23, please. Communication from Vice Mayor Richardson, Councilman Andrews, Councilmember Yarrawonga, Councilman Austin. Recommendation to request City Attorney to draft a resolution in support of the Safe Consumer Lending Act AB 2500. Thank you. So recently the Center for Responsible Lending participated in heard about our everyone in economic inclusion work and asked that we, the City of Long Beach, take a position within a fairly short timeline on a B to 2500. So many families across California live paycheck by paycheck and stagnant wages, high costs of housing, childcare, other financial strains contribute this problem. Unfortunately, some lenders see this despair as an opportunity to trap borrowers into high cost loans, with exorbitant interest rates that far too often lead them into financial ruin. Payday lenders and other loan sharks disproportionately target low income communities that are really struggling to make ends meet. Currently, California law does not have a limit on NPR that lenders could charge on loans between 20 $510,000. So that's why that's where we see most of the predatory lending taking place. A 2016 annual report by the California Business Department of Business Oversight found that 58% of loans between 20 $510,000 had appeared of 100% or higher, with 25% of those being upwards of 300% APR. Today, the California Assembly Banking Committee approved legislation that will help vulnerable working families who take out these kind of loans. The Safe Community, Safe Consumer Lending Act, AB 2500, brought forward by Assembly member Ash Culver, applies a 36% rate cap on loans between 25,000 505,000. So I'm pleased that the the Banking Committee has approved this common sense measure to curtail some of the riskiest installment lending in the state. Families living paycheck by paycheck need to need needs, solutions to help maintain stable finances and build wealth. So I personally urge the full assembly to support HB 2500, and I ask for the City Council to pass a resolution in support of HB 2500. I want to thank Councilman Austin, Sheriff State Ledge, Councilman Andrews, who who's taken on this fight about consumer payday lending in the past, and also Councilmember Durango for signing on. Thank you, Councilmember Rida. Very happy to support this item. I thank you for bringing attention to a very, very serious problem. Thank you. Thank you, Councilman Andrews. Yes, thank you, Vice Mayor, and for bringing this item forward, because especially in my community, predatory lending is an issue that affects several households in the sixth District. And as a lender, abuse, in addition to the desperation of a family struggling on a check to check basis, high interest rates, keeping families in debt and unable to achieve financial independence. We have a responsibility to protect our vulnerable population. And with this said, this item has my full support. And thank you very much, Vice Mayor, for bringing this forward thinking. Councilman, Councilman, your encouraging comments. We did it. Did okay. Councilman. Thank you very much. I also want to thank you for bringing this forward. Councilmember Richardson, I think this is certainly consistent with our positions that this council has taken in the past in terms of restricting predatory lending in our city. And so it has my full support as well. I also just would add, Steph, if we could just get in at some point, get a member memo to see where we are with predatory lending or payday lenders in the city of Long Beach. Because I know we did put some some restrictions on on where they could be or I thought we banned them altogether. But that was for one year. Was it a moratorium? Yes. So I'd like to see where we are with that. Thank you. And since we're. But you brought it up, councilman. And I just it's as I've mentioned it before, I want to just add to what the councilman said. I know that there was and we know we put in place a yearlong moratorium on the payday lending issue. Since then. I know that I had mentioned a few times and that report that comes back the councilman just asked for. I also please include what are other further options are. I think this is a continues to be a total nightmare of an issue for the city of Long Beach. And please just respond to what our other options would be to that member the councilman requested. Thank you. It was a motion by Vice Mayor Richardson and Councilman, your rank is your public comment on this item. Okay, please cast your votes.