Daily Record, The (Baltimore), Apr 6, 2010 by Nicholas Sohr
The General Assembly has approved tighter restrictions for payday lenders, closing a loophole that state financial regulators say allowed financial services companies to charge more than 600 percent interest on some loans.
The bill, H.B. 79, passed the Senate 47-0 late Monday night and now heads to the governor’s desk for his signature. The House of Delegates passed the bill 106-29 on March 19.
“This legislation really underscores the administration’s commitment to protect Maryland citizens from unfair business practices,” said Alexander M. Sanchez, secretary of the Department of Labor, Licensing and Regulation.
“Maximum interest rates have been in Maryland law for many years, and we’re gratified that the General Assembly is reinforcing those for the benefit of consumers,” he added.
State law sets a 33 percent cap on the annual interest rate on loans up to $6,000
payday loans