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Committee passes bill to set guardrails on rent‑now‑pay‑later products
Summary
AB 2,350, put forward by Assemblymember McKenna, would set consumer protections for rent‑now‑pay‑later products used for rental housing; tenant advocates and legal‑aid groups urged support and financial‑industry groups asked to refine the bill to avoid unintended impacts.
The Assembly Banking and Finance Committee voted to pass AB 2,350 as amended to the Committee on Appropriations after sponsor remarks and testimony from advocates and industry representatives.
Assemblymember McKenna accepted committee amendments and said AB 2,350 would set guardrails on rent‑now‑pay‑later services to protect renters from high interest, junk fees and potential eviction risk. "Rent now pay later loans with high interest rates and junk fees can be harmful," McKenna said.
Supporters included the California Democratic Renters Council, LA Voice, the Legal Aid Foundation of Los Angeles, and tenant advocates who described heavy rent burdens and the risk that some products can leave households exposed to additional fees or credit reporting consequences. Lisonbee Snow, mayor of Lemon Grove, said her city sees rent‑related court congestion and urged support.
Opposition speakers from fintech and trade groups said they are willing to work with the author on carving out the intended scope so the bill does not unintentionally sweep in unrelated financial products. Scott Govner for the American Financial Services Association said his members are not active in the "rent now, pay later" space but expressed concern about the bill in print and welcomed further discussions.
The committee accepted the author's closing request and the secretary recorded the motion; the bill was passed to Appropriations for further consideration.
Next steps: AB 2,350 will be considered by the Committee on Appropriations.
