The California Assembly has passed legislation to end a 34-year era during which non-bank lenders have been free to charge consumers unlimited interest rates on loans from $2,500 to $10,000.

By setting a 36% annual rate cap on such loans, Assembly Bill 539 by Assembly Banking and Finance Committee Chairwoman Monique Limón, a Democrat from Santa Barbara, would provide Californians with protections against high-cost loans similar to safeguards now enjoyed by an estimated 232 million Americans.