"Debt Settlement in Maryland:
Compounding Problems, Deepening Debt"
Debt settlement is a scheme that promises to help consumers escape from pressing debt, but instead generally leaves them in worse shape than before. The practice is unregulated in Maryland, and ranks of those who have been taken in by this system are growing at an alarming rate.

Instead of helping consumers negotiate lower rates for their debt and then pay it off in a timely manner – as a credible debt management firm would do – debt settlement companies instead collect huge upfront fees, encourage consumers to stop paying their creditors, and typically perform no real service but still walk away with thousands of dollars in profit. The consumer is left with less money, a worse credit score, angrier creditors, and dwindling options. MCRC’s new report, Debt Settlement in Maryland, explains this scheme and lays out policy recommendations to protect consumers. Download the executive summary here or download the full report here.


"Limiting the Cost of Being Poor"
This report surveys laws in Maryland regarding payday lending, refund anticipation loans, debt management services, check cashing and state bankruptcy exemptions. Included are discussions of these five topics and recommendations for preserving or enhancing the law currently in place. As the report notes, Maryland has already taken action to protect consumers by legislating in the areas of payday lending and credit counseling. In other areas, this report finds that Maryland lags behind and must take action to improve basic consumer protections. Download it here.

"Protecting Home Ownership"
This report finds that predatory mortgage loan practices continue to be a problem for homeowners in Maryland and that subprime loans account for a disproportionate share of the foreclosures in the state. We conclude that Maryland’s anti-predatory lending law, enacted in 2002, is one of the weaker state laws passed in the wake of widespread lending abuses in the 1990’s. We found that Maryland’s foreclosure law does not provide homeowners with adequate notice or other protections needed to prevent the unnecessary loss of their homes. We also found that there is little help for homeowners facing foreclosure, even for those who are unable to pay their mortgage through no fault of their own. Download it here.

"Graduating Into Debt"
Not long ago, credit cards were reserved for those who could prove that they had the income and self-discipline to manage credit. A college student could not obtain a credit card unless a parent co-signed. In the past ten years, the stereotype of the financially struggling student has been replaced by the image of the credit card wielding student who wants for nothing. Credit cards have given students financial freedom – freedom to purchase clothes, electronic equipment, and exotic spring vacations. But many question whether that freedom has come at too high a price – increased bankruptcy filings among young adults, students being forced to drop out of school because of debt, and students graduating and starting life with a high debt load. Download it here.