Online Lenders Alliance Expresses “Strong Opposition” to Proposed Rate Cap Legislation in California and Maryland

State Issues Lending Consumer Finance

In an April 12 letter to California Assembly member Matthew Dababneh (who chairs the state Assembly’s Committee on Banking and Finance), the Online Lenders Alliance (OLA) expressed its “strong opposition” to legislation introduced in California that would impose an interest rate cap for consumer loans or lines of credit in those states. Specifically, the Alliance contended that the legislation (A.B. 1109) would “significantly impact a consumer’s ability to find credit.” The OLA also communicated similar concerns in a letter to Maryland Governor Larry Hogan requesting that he veto cross-filed legislation (SB 527/ HB 1270) passed by the Maryland General Assembly.