1st Consumer Reception
The 1st Consumer Issues Reception, held on February 3 in the Lowe House Office Building, was a rousing success and we heartily thank the nearly 100 people who participated. Legislators who joined us include
Del. Saqib Ali
Del. Pamela Beidle
Del. Liz Bobo
Del. Alfred Carr
Del. Jim Gilchrist
Del. Sue Hecht
Del. James Hubbard
Del. Tom Hucker
Del. Steve Lafferty
Del. Susan Lee
Del. Shirley Nathan-Pulliam
Del. Doyle Niemann
Del. Kirill Reznick
Del. Dana Stein
Sen. Jennie Forehand
Sen. Mike Lenett
Sen. Paul Pinksky
and Sen. Jamie Raskin
Some of our coalition partners in attendance include AARP, the ACLU, the Attorney General's Office, MAIF, Common Cause, SEIU, Progressive Maryland, League of Conservation Voters, People's Insurance Counsel, and the Community Law Center.
The event was sponsored by MCRC, Maryland PIRG, JOTF, the Maryland Homeowners’ Association and the Maryland CASH Campaign. Special thanks to the Woodland Job Corps Center for catering the event, and to Maria Topper of Del. Hucker's office who was an invaluable help in coordinating the event logistics.
MCRC’s legislative priorities for the 2010 General Assembly session include:
Debt Settlement
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 the ranks of those who have been taken in by this system are growing at an alarming rate. We support legislation that caps what firms can charge and prevents servicers from collecting fees before the debt has been settled.
Refund Anticipation Loans
Consumers take out Refund Anticipation Loans (RALs) based upon their expected tax refund. However, these loans are often accompanied by extremely high APR rates and misleading claims about the ease of repaying the loans. We support legislation that will require that consumers receive clear information about the costs of taking out a RAL so that individuals can make informed decisions about this loan product.
Foreclosures
More than 1 in 10 prime borrowers in Maryland fell behind in their mortgage payments this past November. In September 2009, nearly 150,000 Maryland homeowners were at least one month behind in payments. This was a 70 percent increase since September 2008. We support legislation to require mediation with banks and servicers before foreclosure of a primary residence.
MCRC Opposes Elimination of
People's Insurance Counsel Division
Feb. 2: MCRC submitted testimony to the House Economic Matters Committee today in support of the People's Insurance Counsel Division. An excerpt of the letter follows:
MCRC opposes HB 144, which would close the People's Insurance Counsel Division. The Division was established in the 2004 special session to represent consumers’ interests related to homeowners insurance and medical malpractice.
This office has worked for the benefit of consumers since its inception. In this current economic climate, it is critical that experienced counsel is available to represent consumers’ interests in these types of insurance matters.
MCRC not only believes that this office is needed; we believe the jurisdiction and scope of the office should be expanded to include other insurance products that affect consumers, such as auto and life insurance.
Download the full testimony here.
MCRC testifies in support of House Bill 79
Jan. 21: MCRC Executive Director Marceline White testified today in support of HB 79, which closes a loophole on the fee limit for payday lenders. MCRC board members Rebecca Bowman, Administrator of the Howard County Office of Consumer Affairs, and Robin McKinney, director of the Maryland CASH Campaign, will also testify in favor of the legislation.
"MCRC believes HB 79 is needed to close a loophole in Maryland’s Credit Services Business Act and to support the legislature’s intent to prohibit payday lending in Maryland. Payday loans are not legal in Maryland and never have been. Yet, as MCRC’s 2007 report “Limiting the Cost of Being Poor” documents, payday lenders will go to extraordinary lengths to circumvent Maryland law. The Maryland Consumer Loan Act caps the cost of a $500 small loan at 33 percent APR," Ms. White testified.
"Recently, online lenders have tried again to subvert the Maryland legislature’s decision to cap loans at 33 percent. Online payday lenders are partnering with predatory service organizations to charge interest plus service fees making the raising the APR to up to 600 percent, far exceeding the Maryland’s rate cap.
HB 79 clarifies that all fees be included within the 33 percent cap. Closing this loophole protects Maryland consumers from predatory payday lenders and is consistent with past actions the Maryland legislature has undertaken to maintain a 33 percent rate cap in the state." Read her full testimony here and read the text of the bill here.
MCRC releases report on debt settlement, holds news conference with Attorney General Gansler and Deputy Commissioner of Financial Regulation
January 2010 -- 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. MCRC’s new report, Debt Settlement in Maryland, explains this practice and lays out policy recommendations to protect consumers. Click here to download the report.
Click here to see excerpts and photos from our January 5th news conference with Attorney General Doug Gansler.