Erika Paz

A new report found a dramatic decrease in Californians’ reliance on payday loans as a direct result of pandemic-related government assistance, including unemployment benefits, rent relief, eviction moratoriums, stimulus checks and loan forbearance. But experts warn that use of payday loans is expected to rebound once government assistance ends.

A bill aims to create new rules for California’s mostly unregulated debt settlement industry. AB 1405, expected to pass through Senate committees, comes at a time when the industry expects to see a 75% increase in account enrollment.