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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Indiana lawmakers will not study the Bureau of Motor Vehicles' practice of selling driver data this summer but some legislators said the issue deserves more attention.

Sen. Rodney Pol, D-Chesterton, said Hoosiers have no clear way to stop the state from selling their personal information.

"If you want to drive in the state, it's not as if you can go and get your license somewhere else," Pol pointed out. "At the very least, letting people opt out."

The BMV has earned tens of millions of dollars annually from selling information like names, addresses, and vehicle details. Supporters argued the revenue helps fund agency operations but Pol countered lawmakers should at least hold hearings on the practice and consider guardrails.

He worries about what happens after data leaves the state's hands.

"What are the requirements after somebody's information has been turned over or sold to a company? What are the security requirements for that company to hold?" Pol asked. "Because no offense to the towing industry, but I highly doubt that they're a fortress of cybersecurity."

Pol added he and other lawmakers plan to refile legislation next year and continue pushing for bipartisan action on privacy protections.


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Jenkins Enterprises in North Little Rock is one of many small businesses across Arkansas facing extra costs from tariffs issued by President Donald Trump.

The company makes souvenirs, gifts and licensed college merchandise for 150 colleges and universities and employs 70 people.

Steve Jenkins, CEO of the company, said he has been buying manufacturing components from China since 1996 and the up-and-down tariffs are disrupting the workflow.

"If you have a $10 item and you apply a 145% tariff the tariff cost is $14.50, so now my cost is no longer $10, it's $24.50, more than double," Jenkins pointed out. "That gets passed on to the consumer."

Tariffs on Chinese imports dropped from 145% to 30% in May. The lowered tariffs are scheduled to remain in place through August while the U.S. and China negotiate a trade deal.

Retailers place orders with suppliers months in advance to stock their shelves. Jenkins added since manufacturing and shipping costs have increased, customers are hesitant to place orders. He currently has one shipment of toy trucks that's in limbo.

"My cost on that container would have been about $50,000," Jenkins explained. "During that time period, my cost went from $50,000 worth of toys to $135,000. We can't do that. So, depending upon what happens and when we can get that ready to ship is going to depend on whether or not there are toys in the stores for Christmas."

Jenkins and other small business owners nationwide have formed the group "Tariffs Cost US" to draw attention to how the trade wars are affecting businesses, consumers and the overall economy. They said the tariffs are affecting manufacturing, shipping, hiring and marketing.


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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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