Maryland

The complaint cites research from the Center for Responsible Lending showing that users of apps like MoneyLion often incur more overdraft fees and take out multiple advances within weeks. The city argues that those patterns demonstrate how consumers become trapped in recurring debt.

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...

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...

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...

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...

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 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...