Loan interest caps take credit away from the poor

This week the California state Senate will debate Assembly Bill 539, a bill that would make half of consumer loans between $2,500 and $10,000 made in the state illegal. The bill’s aim is to lower the cost of consumer credit, but history shows that interest-rate caps like the one AB539 would institute only work to reduce the supply of loans, especially to the most vulnerable.
The Golden State already has one of the most draconian payday loan laws in the Union: Borrowers may b