Maryland Goes After Payday Lenders' Banks to Stop Illegal Loans

August 19, 2013
Baltimore Sun 
payday lending news

Maryland's financial regulator is trying to stop illegal online payday loans by dogging the banks that help make the advances possible. "Without the payday lender's bank, the payday lender can't operate in my state," reasons Mark Kaufman, commissioner with the state's division of financial regulation. "They are the entry point into the system. Without them, none of this works."

The payday lenders being targeted operate online, beyond the reach of state regulators; so authorities in Maryland, New York, and other states that restrict payday lending are training their scrutiny instead on the traditional banks that aid online lenders. "This is a new tack that states are taking," notes Alex Horowitz of the Pew Charitable Trusts.
Web Link

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.