Consumer Federation of California

Protections Against Monopoly Harms Advances, but Predatory Payday Lenders and Medical Credit Cards Run Amok Thanks to Special Interest Power at Assembly Banking & Finance Committee, Chaired by Avelino Valencia (D – Anaheim) 

FOR IMMEDIATE RELEASE: May 29, 2026

SACRAMENTO, CA – The Consumer Federation of California (CFC) today released a mid-year update on CFC’s key legislative priorities amidst our affordability crisis, noting important progress in protecting consumers and small businesses against monopoly power and ever-increasing Homeowner Association (HOA) fees, but also noting key losses at the hands of the Assembly Banking Committee, which protected the predatory practices of payday lenders and medical credit cards that are severely harming consumers on a daily basis.

“We feel good overall about our progress on key issues with friends and allies,” said Robert Herrell, Executive Director of the Consumer Federation of California. “Significant advancements are in the works to curb monopoly power in California, as well as cracking down on runaway HOA fees. We are also advancing proposals to enhance safety for internet purchases and inject common sense into the regulatory process. However, the leadership of the Assembly Banking and Finance Committee crushed two key consumer affordability measures and instead sided with the predatory payday lending industry and abusive medical credit card issuers, two industries with business models straight out of a Charles Dickens novel, by not even allowing a vote on two critical consumer protection bills. That must change.”

CFC has a legislative affordability package in 2026. Here are key elements and updates: 

• Curbing Monopoly Power – AB 1776, the COMPETE Act by Assembly Majority Leader Cecilia Aguiar-Curry (D – Winters) modernizes California antitrust law by enhancing options against monopolies and passed the State Assembly. 
• Limiting Runaway HOA Fees –  SB 1007 by Senator Caroline Menjivar (D – San Fernando Valley) caps annual HOA increases for regular assessments at 8%, as opposed to the currently oppressive 20%, passed the State Senate on a bipartisan vote.  
• Common-Sense Regulatory Reform – SB 1123 by Senator Scott Wiener (D – San Francisco) requires benefits of regulatory proposals to be better accounted for, passed the State Senate. 
• Online Marketplace Safety – AB 2076 by Assemblymember Josh Lowenthal (D – Long Beach) enhances internet security by preventing certain online marketplaces from selling nitrous oxide to California consumers, passed the State Assembly 

CFC will continue to also push SB 29 by Senator John Laird (D – Santa Cruz) to reestablish remedies to families seeking justice and SB 784 by Senator Maria Elena Durazo (D – Los Angeles) to limit home improvement frauds and scams. Both those bills had already advanced to the State Assembly. 

The Damage Done to Consumers by the Assembly Banking & Finance Committee 

The following two bills were unceremoniously not even heard by the Asm. Banking committee: 

AB 2558 by Assemblymember Marc Berman (D – Menlo Park), would have had California join 21 other states in curbing outrageous interest rates of up to 400+% being charged to consumers by the payday lending industry. The bill was co-sponsored by CFC alongside the Dolores Huerta Foundation, Center for Responsible Lending (CRL) and Economic Security California Action (ESCA). The payday lending industry opposed the bill and all but asserted the earth would stop spinning on its axis if California consumers were protected from their predatory interest rates and “cycle of debt” business model. 

AB 2746 by Assemblymember Pilar Schiavo (D – Chatsworth), would have prohibited medical credit card debt from appearing on consumer credit reports. This bill had been heard the week before its scheduled hearing at Assembly Banking by the Assembly Health Committee, where it passed on a party-line 12-4 vote. This bill would have closed a loophole forced into legislation by Senate President Pro Tempore Monique Limon (D – Santa Barbara) that became law in 2024. CFC co-sponsored this bill with the California Low-Income Consumer Coalition (CLICC) and the California Public Interest Research Group (CalPIRG). Synchrony Bank, currently being sued by military veterans for jacking up their interest rates, led the opposition to the bill on behalf of their predatory product CareCredit. 

Finally, AB 2629 by Assemblymember Phillip Chen (R – Yorba Linda) which would have capped outrageous upcharges by so-called DMV “partners” on consumers when they renew their vehicle registration, died on the Assembly Appropriations Committee Suspense file. The DMV and their “partners” who make millions by fooling consumers into thinking they’re paying the same price as they would on the DMV website led the opposition.  

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About the Consumer Federation of California: The Consumer Federation of California is a nonprofit advocacy organization that, since 1960, has been a powerful voice for consumer rights. CFC campaigns for laws and regulations that place consumer protection ahead of corporate profit, either in front of the California Legislature or before state agencies in support of consumer regulations.

Tags: 2026, Assembly, California, legislation, Press Release, Sacramento, Senate