Sara Routhier, Managing Editor of Features and Outreach, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming worl...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

Full Bio →

Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Apr 18, 2013

Advertiser Disclosure

Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.

California politicians voted down a bill that would have increased regulation on payday lending during a Wednesday meeting of the Senate’s banking committee.

The bill, SB 515, would have prevented borrowers from taking out more than four payday loans in one year. It also called for stronger vetting of payday loan borrowers’ ability to pay and would have extended borrowers’ repayment periods.

Five members of the California Senate Banking and Financial Institutions Committee voted against the bill, three voted for it and one member abstained.

Though the committee does not release how each member of the committee voted, representatives from the Center for Responsible Lending believe committee head Sen. Lou Correa voted against the bill. Correa is one of the top ten receivers of campaign funds from payday loan lobbyists in the state.

In a statement to loans.org, Sen. Hannah-Beth Jackson, who wrote the bill, expressed her disappointment with the vote.

“I’d hoped that more committee members would have been willing to stand up to the industry. I will continue to push the issue until we have reasonable controls over these predatory lending practices, which adversely impact the poorest among us.”

According to Jackson, the vote consisted of Correa, Roth, Calderon, Walters and Berryhill voting against moving the bill forward and Beall, Corbett and Hill voting in support of it. Hueso abstained.

Jackson, however, plans to continuing working towards payday loan reform in California.

“Even though the bill was not voted out of committee yesterday, it is not dead. It was granted ‘reconsideration,’ meaning it can be taken up again at a later date,” Jackson said.

As previously reported, the bill was not expected to move forward in the same form Jackson intended. Due to the strength of the payday lobby, and its financial support of several members of the banking committee, it was expected that the bill would be modified to allow borrowers six payday loans a year.

SB 515 also called for extending loan repayment terms to 30 days for every $100 borrowed, but it was believed that the 30-day term would have been applied to the entirety of the loan. Currently payday loan terms are no longer than 31 days, and the fees are capped at 15 percent on cashed checks.