California New Ab539

[adjusterjack]

Jurisdiction

California

I took a quick glance at the new law and can't find anything in it saying one way or the other.

AB539 | California 2019-2020 | California Financing Law: consumer loans: charges. | TrackBill

My guess is that it would only apply to new loans. I think a law would have to say it's retroactive to be retroactive.

 

[Chavezraulv]

Hello I posted this on the "Other Debts" Section of the Forum but since it has to do with a contract I am not sure if I should ask here.

I have questions regarding the new Ab539 that came into effect this year. I currently have a loan with CashNetUSA and on the contract is specified that the loan is made under the CALIFORNIA FINANCE LAW (CFL). Being that Ab539 amends the CFL and doesn't allow lenders to charge more that 36% does this affects my current loan? Does this work retroactively? Do the lender has to lower my interest which is currently 128%? or does this new bill that passed only affects new loans they offer after Jan 2020.?

Thank you!!

 

[adjusterjack]

Hello I posted this on the "Other Debts" Section of the Forum but since it has to do with a contract I am not sure if I should ask here.

No need to post more than once. We all read all the forums. I deleted your other post as a duplicate. Please keep future discussion to this thread.

Again, my guess is that it would only apply to new loans. I think a law would have to say it's retroactive to be retroactive.

You can call your state's legislature's office and inquire.

 

[Tax Counsel]

Again, my guess is that it would only apply to new loans. I think a law would have to say it's retroactive to be retroactive.

Very likely that it applies only to loans originating in 2020. The law requires several things for the loans targeted in it that would be rather difficult for lender to comply with for already existing loans.