ACTION ALERT: Tell Your Electeds to Keep Payday Lending OUT of Maryland
SB 527/HB 1270 will guarantee that any open-line of credit can only charge 33% including fees and other charges for credit loans. This bill will stop companies like CASHNET USA who are currently using this line of credit to thwart Maryland’s 33% interest rate cap and offer credit to Maryland families at 400%.
Can you help us by taking two minutes to send an email to your elected officials on the Senate Finance and House Economic Matters committees, asking them to stand up for Maryland borrowers and keep predatory payday loans OUT of our state?
We need YOUR help to pass this legislation. These out-of-state lenders have hired high-powered Annapolis lobbyists to help them continue to exploit working families in our state. Members of the Senate Finance Committee and Economic Matters Committee need to hear from you TODAY that we don’t want predatory loans coming into our state. Without your help, this bill may be amended to ALLOW payday lenders to legally enter Maryland and provide these predatory products.
Ask Senators and Delegates to pass SB 527/HB 1270 out of committee without any harmful amendments! Click here to take action. CALL IF YOU CAN. IF NOT, SEND AN EMAIL. If you have five minutes, please also call your electeds! You can find the House Economic Matters commitee members' phone numbers by clicking here. You can find the Senate Finance committee members' phone numbers by clicking here.
For more than three decades, the Maryland legislators have said that consumers should pay no more than 33% for small, short-term loans. While 33% may sound high, it has prevented payday lenders from opening stores in Maryland.
In other states without Maryland’s rate caps, payday lenders provide short-term loans to cash-strapped consumers at 400% -1200% interest rates. Of course, these loans are no life-line, they are a debt trap: most consumers are unable to pay off the first loan and roll it over to a second loan. The typical consumer that takes out a payday loan ends up taking out 6 to try to pay off the first loan. And they pay thousands of dollars in interest and fees-far beyond the amount of the loan that they took out.
It’s no wonder that these predatory lenders want access to Maryland consumers-the payday lenders earn thousands of dollars from each cash-strapped individual that takes out a loan.
Five times since 2000, payday lenders have tried new models or exploited loopholes in order to offer high-cost loans to low-income workers in Maryland. Due to racial and gender wealth gaps, communities of color and single mothers are often disproportionately affected by these predatory loans.
Yet the past five times, the Maryland General Assembly has stood up to payday lenders and rejected these attempts to skirt our usury rate cap. Five times, the Maryland legislators have supported our 33% rate cap.
Today we need your help to ask them to support the rate cap of 33% once again.
Read our background factsheet by clicking here.
Read our one-pager about the bill by clicking here.
P.S. Can you make a donation to help us to continue to fight against the high-powered industry lobbyists in Annapolis? We’re fighting with and for you! Make a one-time or reoccuring donation by clicking here.