Payday Lending Can Come To Maryland
Last Updated on Monday, 26 November 2012 12:58 Written by Ebiz Monday, 26 November 2012 12:58
At present, the laws of Maryland prohibit payday and car title lending. However this will soon change. In the House of Representatives sits a bill that could allow such businesses to open up. Consumer rights have the reigns pulling the wagon in, bringing this proposal to the House. The Consumer Rights Collision is fighting HR 1909. This bill, if passed, would do away with all the payday lending industries protection that Maryland processes.
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HR 1909 creates a charter that provides for the overseeing of the payday lender by the federal financial services and credit companies. This means that the comptroller of currency could and does regulate companies known as Ferederal Finance Services and Credit Companies. This bill was intended for the payday lender and other non-bank lenders, this bill would give these industries a way to skirt past strong scrutiny from the Federal Financial
Protection Bureau, as well as, other pertinent regulatory legislations.
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Many of Maryland?s neighboring states, Delaware and Virginia, has introduced legislation that has tightened the reigns of payday lending and other non-bank lending without austraziing the non-bank lending industries ability to operate? in the state. The group of people most affected by the payday lender and other non-bank lenders are the impoverished. This group of consumers is unable to afford the high interest rates and end up getting another loan in order to pay of the initial loan.
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Stay On The Right Side Of The Law With A Payday or Car Title Loan
Maryland is one of many states who have tried to outlaw the payday lender. Payday lenders have still been reaching the citizens, however, through the internet and through Maryland citizens crossing state borders in order to obtain a payday loan. To outlaw the Maryland payday lenders industry just causes less revenue and less spending for the state. Also, when the consumer uses an online payday service, he or she is fraught with the terms and conditions that the online lender is regulated under. Some online lenders could be Native Americans and have tribal autonomy or be from another country. A tribal affiliated lender claims that they do not need to follow the rules of the state or any other federal regulations. The tribal affiliated lender can charge a 700% interest rate or more to the borrower and the terms and conditions of the loan are not scrutinized. The borrower can be placed in a very dangerous financial situation. The overseas lender is not required to follow the rules or regulations set by the state or the federal government, either, so the same situation applies to these lenders.
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Maryland would have more control over payday lenders, if payday lenders were allowed to operate within the state boundaries. Maryland could set the rules and regulations, to control interest percentages and rates, as well as, the terms and conditions attached to the loan that the payday lender is offering.The payday lender?s operations would better serve the citizens of the state and the citizens would be offered more financial protection. If the state of Maryland has no regulatory rules governing the payday lender, then its citizens are prey for the out of state online payday lender. The poor will always find a way to gain more cash, if the state wishes to help the poor, then they need to be more flexible as to the needs of the poor citizen. A payday loan, bad credit or no credit consumer, to get needed cash for their everyday payday to payday struggle.
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This entry was posted on Monday, November 26th, 2012 at 12:58 pm and is filed under Debt. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
Source: http://blog.ebusinessdebtrelief.com/debt/payday-lending-can-come-to-maryland
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