March 23, 2017
The wealth gap continues to widen as interest rates on loans over $2,500 remain mostly unchecked in California. Juliana Fredman, an attorney at Bay Area Legal Aid who represents low-income consumers on debt collection cases, said typically her clients don’t fully understand the terms of the loans they signed up for and can’t keep up with payments.
Without limits on loan interest rates for people that wouldn’t otherwise qualify, the wealth gap will only get worse and more low-income people will find themselves deeper and deeper in debt. These lending companies need to be held accountable.
Organizations mentioned/involved: Bay Area Legal Aid (BayLegal)