Maryland governor allows bill regulating advanced-pay apps to become law

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Rachel Baye | Baltimore NPR
EWA providers make their money from repeat users, said Whitney Barkley Denney, deputy director of state policy and senior policy counsel at the Center for Responsible Lending. “They take out maybe $50 or $100 before payday, payday comes around, they don't have the $50 or $100 on payday, so they need to borrow it again,” she said. “And so we...

Moore allows payday loan bill, other measures to become law without his signature

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Bryan P. Sears | Maryland Matters
Critics say the bill as drafted exempts app-based lenders from state laws that “prohibit lending that is discriminatory, is deceptive, or carries extremely high interest rates.” The Center for Responsible Lending said in a statement that the new law makes it easier for Marylanders to be sucked into “financial quicksand” because of payday loan apps. “The bill becoming law but...

Local & National Advocates Urge Maryland Governor to Veto Bill Authorizing Predatory Lending Apps

45 local and national advocates from across the country, including 20 from Maryland, urge Maryland’s Governor to veto HB1294, a bill that gives app-based payday lenders a special exemption from state laws that prohibit lending that is discriminatory, is deceptive, or carries extremely high interest rates.

Today: Maryland’s State Senate to Vote on Bill that Legalizes Predatory Payday Loans Made Through a Phone

ANNAPOLIS, Md. – The Maryland State Senate is scheduled to vote this afternoon on HB 1294, legislation that would exempt payday loans made through cell phone apps from the state’s usury law, which limits annual interest rates to 33% APR. "Maryland policymakers should reject this legislation, which would legalize cellphone app payday loans that regularly trap people in debt,” said...

New CRL Report Reveals Large Hidden Costs of Earned Wage Advance Apps

Consumers experienced a 56% increase in checking account overdrafts after using an advance product WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) released a report with new data showing that consumers who took out small loans using cash advance apps paid triple-digit annual interest rates, experienced high levels of repeat reborrowing, and incurred more bank overdraft fees after...

Fintech Industry and Maryland Legislative Allies Hijack Regulatory Bill, Abandon Long-Held Consumer Financial Protections, Allow the Return of Abusive Payday Lending

Washington, DC – After decades of protecting borrowers from high-cost, payday lenders, Maryland lawmakers are poised to eliminate longstanding consumer protections in a bill that lets nonbank earned wage advance (EWA) lenders create an industry-defined financial category that allows them to charge triple-digit interest rates and unlimited junk fees on payday-style loans to hardworking consumers. There is ample evidence, including...

The Fight Ahead Over Earned Wage Access

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Kate Fitzgerald | American Banker
The latest research from CRL suggests that for consumers who repeatedly pay fees and "tips" for expedited EWA funds through popular third-party EWA service providers like MoneyLion, Earnin and Dave, it amounts to a digital payday loan. In a survey CRL conducted in May among 300 users of direct-to-consumer EWA services, 39% said they feel like they must keep on...

High-Cost Lenders Scheme with Banks to Evade Consumer Protections

A few high-cost lenders are evading state consumer protections through rent-a-bank schemes. Through these sham arrangements, these companies are exploding right through the interest rate limits that most states have put in place for good reason, to protect people from high-cost debt traps that drain them of their hard-earned income. In the following states, payday lenders are using banks, which...

Avoid payday lenders at tax time

Source
The Baltimore Sun
Payday lenders like tax season. That’s because they know a good number of people will come to them to cash refund checks, and they will collect a nice bounty in fees. A quick Google search finds all sorts of such companies touting how easy they make it for people to get their tax money. It can be tempting for those...