California Installment Loan Rate Cap Signed Into Law

California installment lenders will have to cap the interest rates they charge to consumers now that the state’s new limits was signed into law.

Gov. Gavin Newsom (D) on Oct. 10 signed into law legislation that will bar lenders from charging interest rates higher than 36 percent plus the federal funds rate on installment loans between $2,500 to $10,000.

“Defaulting on high-cost, high-interest rate installment loans push families further into poverty instead of pulling them out. These families deserve better, and this industry must be held to account,” Newsom said in a statement.

Californians for Economic Justice, a coalition of ...