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AB 2028

Deferred deposit transactions: assessments.

2025-2026 Regular Session Introduced by Phillip Chen

AB 2028 modifies California payday loan regulations by adjusting assessment mechanisms, potentially affecting borrower costs and lender compliance requirements.

Referred to Com. on B. & F.I.
#deferreddeposittransactions #assessments
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Bill Summary · AB 2028

Legislative bill overview

AB 2028 proposes modifications to California's regulations governing deferred deposit transactions (payday loans). The bill, introduced by Assemblymember Phillip Chen, appears to address assessment mechanisms or fee structures related to these short-term lending products. The specific provisions are not yet publicly detailed given the bill's early stage in the legislative process.

Why is this important

Deferred deposit transactions are a significant consumer finance issue affecting low-income Californians who often rely on payday loans despite their high costs. Any regulatory changes to assessments or fees directly impact borrowing costs and could affect access to these products for vulnerable populations. This legislation could reshape the payday lending landscape in California, which already has some of the nation's stricter regulations on these loans.

Potential points of contention

  • Consumer protection vs. market access: Stricter assessment requirements or fee caps may reduce predatory lending but could also limit credit availability for those with poor credit scores
  • Industry compliance costs: New assessment mechanisms could increase operational expenses for lenders, potentially passed to consumers or reducing market participation
  • Regulatory clarity: The bill's effectiveness depends on clear definitions of what constitutes assessments and how they're calculated, which may create implementation challenges

Compiled from official sources — confirm details with the bill’s official record.

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