SACRAMENTO, Calif. — The Attorneys General from 20 states, including California's Xavier Becerra, have signed a letter to Congress, slamming two bills that would gut current state laws meant to protect people from predatory lenders.
HR 3299 and HR 4439 would clear the way for payday lenders to evade state usury laws and make loans with triple-digit interest rates, by making deals to operate under a bank's charter. Diane Standaert, executive vice president and director of state policy with the Center for Responsible Lending, called it a "rent-a-bank" scheme that would void any state consumer-protection laws that cap interest rates.
"The reality is that their passage would open the floodgates to predatory lending, with annual interest rates of 100-400 percent,” Standaert said; “even in states where they're currently not allowed."
One of the bills has already passed the House. Supporters claim they would improve access to credit for low-income families and promote innovation in the financial sector. Opponents say ultra-high-interest loans only trap people in a cycle of worsening debt.
Standaert said California has weak usury laws that cap interest rates on loans under $300 but allow them to be rolled over into multiple loans that end up costing the borrower big-time if they are unable to pay off the initial loan. A bill to cap interest rates on car-title loans has passed the California Assembly and awaits a vote in the state Senate.
Standaert said Congress could supersede any such effort.
"This bill would essentially eviscerate California's ability to ever take action to rein in the cost of these really high-cost predatory loans,” she said.
Recent efforts to strengthen the California usury laws have foundered. Assembly Bill 2500, which would have capped interest rates on some loans at 36 percent, failed in the state Assembly about a month ago.
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If the federal government finalizes the budget reconciliation bill in play, pro-consumer voices in Minnesota warn the changes will not be friendly to monthly bills for energy customers.
The analysts pointed to new findings from the nonpartisan think tank Energy Innovation, which looked at provisions in the Senate version from this week. It said the plan would cause Minnesotans' home electricity costs to rise by 28% over the next decade.
Annie Levenson-Falk, executive director of the Citizens Utility Board of Minnesota, said it is because Republican lawmakers are poised to eliminate clean energy tax credits while expanding new oil and gas leasing.
"If we can't build as much wind and solar and renewables, then we're not just going to be building more gas plants, but running inefficient, more costly gas plants, more than we would have to," Levenson-Falk explained.
Levenson-Falk pointed out many Minnesotans are already struggling with utility costs, and the advancement of cleaner energy sources has prevented things from getting worse. Fossil fuel-linked groups are cheering the proposed measure, including America's Power, which argued incentives for renewables are no longer needed and they are pushing out energy sources such as coal prematurely.
The debates remain at the forefront with energy demand predicted to spike in the coming years. Levenson-Falk noted the new report showed transitioning back to a fossil-fuel vision would lead to a slower rollout of additional power capacity.
"Our power plants are old and they need to be upgraded or replaced," Levenson-Falk stressed.
Levenson-Falk acknowledged the need for more power grid upgrades with a diversified energy portfolio. But after up-front construction costs, she added operating solar and wind farms is not as expensive because there is no fuel needed, benefiting ratepayers.
Even with congressional moves potentially stalling progress, she emphasized clean energy would still be a part of the mix as utilities develop their own strategies.
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New Minnesota laws take effect this week but consumer and environmental watchdogs are looking back on one from last year designed to bolster product repair rights for consumers and reduce waste.
A new scorecard from the Public Interest Research Group details manufacturers' compliance with a wave of recent laws removing roadblocks for product owners and independent technicians to access parts, tools and manuals when repairing electronics. Tuesday was the anniversary of Minnesota's version.
Katelynn Rolfes, conservation advocate for the nonprofit Environment Minnesota, said based on the report, it appears some companies are dragging their feet.
"Some of the companies did really well, particularly repairs with Apple phones. But other companies, they're slow to catch up," Rolfes explained, citing appliance companies as an example. "They just aren't offering the information consumers need."
Several dishwasher manufacturers received low marks for product manual availability. The report authors said even though consumer electronics companies had better scores for smartphones and laptops, tablet repair materials lag behind, even for the same manufacturers.
For repair situations where consumers still face headaches, Rolfes noted their household finances and the natural resources they rely on wind up suffering.
"If you can't repair something that you own, you end up buying another one of those things," Rolfes pointed out. "That's just not sustainable, not for our wallets and not for the planet."
Under Minnesota's law, dubbed the Digital Fair Repair Act, consumers who feel they are being stonewalled can file an antitrust report form with the state Attorney General for a possible investigation.
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Ohio's fast-growing electric vehicle sector could face serious setbacks if proposed changes to federal clean energy tax credits move forward.
A new Senate Finance Committee proposal would scale back provisions in the Inflation Reduction Act which industry leaders said have fueled innovation, jobs and supply chain investments in the state.
Kevin Kushman, CEO of the Cincinnati-based EV charging firm Electrada, said the credits, especially the 45W Commercial Clean Vehicle credit, have helped make Ohio a hub for electric fleet infrastructure and manufacturing.
"If the total cost of ownership for the decision-making is based upon, evaporates or changes radically, then the decisions are basically brought to a screeching halt," Kushman pointed out. "Everyone sits on their hands, and what would have been a potential transition stalls."
The International Council on Clean Transportation estimated weakening the IRA could imperil more than 130,000 U.S. auto manufacturing jobs by 2030.
Kushman added the Senate's plan creates uncertainty for both businesses and workers in Ohio and beyond.
"This is one of the largest transitions of energy consumption in our lifetime, moving transportation from hydrocarbons to power," Kushman emphasized. "Maybe you could have a college graduate or someone in the trades that spends the next 20 years of their career in this space because Ohio decided to get behind it and stay behind it."
Industry advocates warned the rollback could deter future investment and stall the state's momentum as a clean energy leader. They are urging lawmakers to adopt a phased transition rather than abruptly cutting incentives businesses rely on to plan long-term growth.
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