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SACRAMENTO — The California Assembly’s Banking and Finance Committee on Monday significantly weakened a bill that would have slashed interest rates charged on payday loans. Assemblyman Dave Jones (D-Sacramento) said his bill to cap interest at 36% a year would afford all California borrowers the same protections extended last year to members of the military. But industry executives and lobbyists said Monday that a 36% rate — a fraction of the 459% now allowed by state law — on loans to all Californians would put them out of business. The Department of Corporations report said that the demand for payday loans in California was high, with borrowers averaging seven loans each in 2006. Find Out More

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