Lieu Bill To Address Financial Burdens Of Military Families Passes Floor

Sacramento, CA – Assemblymember Ted W. Lieu (D-Torrance) won passage of AB 1965 on the California State Assembly floor by a vote of 71-1.

AB 1965 will require payday loan companies to follow a strict set of rules and regulations when following up with members of the armed forces who have outstanding loan advances, including deferring any collection activity against a member who has been deployed, or their spouse.

“Many payday loan companies have already started applying practices that are protecting the young men and women who serve in our military,” said Lieu, who is a veteran of the U.S. Air Force and previously served on active-duty. “However, AB 1965 will ensure that every payday loan company will be held to the same standards—standards that clearly protect our military from being taken advantage of by payday loan companies and having their credit damaged beyond repair.”  

AB 1965 will allow a military member and their spouse to defer payments on a loan, prohibits payday loan companies from garnishing a military member’s salary, prohibits contacting the military chain of command of a member in order to obtain a payment, and requires a payday loan company to honor all terms and agreements of any replacement arrangement between a lender and a military member.

“AB 1965 is one way we can ease the financial struggles of those who serve our nation and help sustain their morale by providing financial relief during deployments,” said Lieu.

AB 1965 will be heard in the Senate Banking Committee in the following weeks.