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New CSO regulations in Maryland

Date: Fri, 10/01/2010 - 11:41

Submitted by anonymous
on Fri, 10/01/2010 - 11:41

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Total Replies: 10


As of today companies like Cash Central or Apply Advance America do not offer loans to Maryland residents.
Looks like they cannot charge the CSO fee anymore therefore they decided to stop doing business in Maryland.
"Financial Regulation
HB 79 - Commercial Law - Credit Services Businesses - Limitation on Fees
This departmental bill amends the Maryland Credit Services Businesses Act (MCSBA) to limit the fees that may be collected in connection with an extension of credit. Specifically, the bill prohibits a credit services business from charging or receiving a fee in connection with an extension of credit that, when combined with an interest charge, would exceed the interest rate permitted by law. Effective October 1, 2010"

Advance America is redirecting you to the Cashnet USA website and Cashnet is now offering some sort of line of credit. My guess? Another atempt to disguise payday loan fees.
Way to go Maryland!!


Paul

Not trying to start an argument or anything, but how is taking a legal, regulated option away from the residents and sending them to the illegal, unregulated lenders a good thing for the residents of Maryland? Just because the laws changed, does not eliminate the need or demand.

You may not like the product or need the product, but there are 10's of thousands that do and now have no legal option. In this day and age, most really do not have the option of going to family or friends.


lrhall41

Submitted by PDLOwner on Mon, 10/04/2010 - 07:58

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I know that CashnetUSA will find a way to go around these new regulations.
They are already advertising something called " a line of credit"....so they will still make money.
As for the illegal lenders...Maryland law is very clear. A collection agency cannot collect on illegal loans...now only if all Maryland residents would know that the illegal loans are unenforceable....


lrhall41

Submitted by on Fri, 10/08/2010 - 11:16

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Well, as the old saying goes, I wish I knew THEN what I know NOW..... I live in Maryland and whenever there's a post from a MD resident on this site, I always try to direct them to the MD Dept. of Financial Regulation. Between that agency and this site, they should be able to work themselves free of the PDL trap.


lrhall41

Submitted by on Fri, 10/08/2010 - 12:34

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Quote:

Originally Posted by PDLOwner
Paul
Not trying to start an argument or anything, but how is taking a legal, regulated option away from the residents and sending them to the illegal, unregulated lenders a good thing for the residents of Maryland? Just because the laws changed, does not eliminate the need or demand.
You may not like the product or need the product, but there are 10's of thousands that do and now have no legal option. In this day and age, most really do not have the option of going to family or friends.

Agree!


lrhall41

Submitted by Shazzers on Tue, 10/12/2010 - 06:26

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