CA AB2558

Caps interest rates on consumer loans under $2,500 at the annual percentage rate defined by the federal Military Lending Act (36% APR), replacing the current tiered system allowing rates up to 30% monthly on small balances

Limits charges on payday loans (deferred deposit transactions) to the Military Lending Act's APR calculation, replacing the current 15% flat fee structure

References federal regulations as in effect on January 1, 2026, locking in the rate calculation methodology at that date

Willful violations constitute a crime under existing enforcement provisions of the California Financing Law and California Deferred Deposit Transaction Law

Introduced by Assembly Members Berman and Aguiar-Curry on February 20, 2026