ASSEMBLYMEMBER TED LIEU
53RD ASSEMBLY DISTRICT
For Immediate Release: March 25, 2008
Contact: Ashlie Simpson
Phone: (916) 319-2053

Landmark Financial Literacy Bill Passes First Assembly Hearing

(Sacramento, CA) – Today, the Assembly Banking and Finance Committee passed landmark legislation to better educate Californians on the essentials of personal finances.  AB 2123 is one of many Lieu bills aimed at easing the far reaching devastation that millions across the country are feeling as a result of the mortgage crisis.

“There is a general lack of financial understanding, which has put many Californians at risk,” said Assemblymember Lieu.  “If more people were taught which questions to ask while applying for home loans and credit cards, we would have mitigated this entire economic downfall.”

AB 2123 is in response to the growing number of people making devastating financial decisions due to inadequate financial education, resulting in such financial catastrophes as the mortgage crisis and plummeting credit scores.  As many homeowners face rising mortgage payments and even foreclosures, it is becoming clear that there is a greater need to educate borrowers, both current and future. 

"Californians and their families should have access to basic information that can help them make sound financial decisions." said Controller John Chiang, who is the sponsor of AB 2123. “This legislation will help empower California consumers by providing a one-stop shop for basic financial information on credit scores, credit card applications, bank accounts and interest rates, and how to avoid a financial crisis.”

This bill creates a financial literacy corps that would assist low and middle income persons with such tasks as credit card applications, opening bank accounts and understanding credit scores, as well as teaching the fundamentals of financial education. This bill provides a clearinghouse of financial information, translated in to different languages, to help people make better educated decisions before committing to financial offers.

“There is a lack of financial understanding in this generation of homebuyers and borrowers,” said Assemblymember Lieu.  “This bill takes a proactive role in educating our citizens to have a better grasp on personal finances, in hope that situations such as foreclosures can be avoided in the future.”