Monday, March 8, 2010

Baltimore Sun editorial urges regulation of payday loans

Today marks the first day of National Consumer Protection Week, so it was heartening to see The Baltimore Sun's editorial this morning about the need to close a loophole in Maryland law that allows payday lenders to charge outrageous fees. This is one of MCRC's top legislative issues.

"... Take, for instance, the Anne Arundel County cancer survivor paying 682 percent interest on $578, or the city resident who took out an $875 loan last June on an interest rate of 675.77 percent and still owes most of the principal.

Officials don't know exactly how much money is changing hands under those kinds of terms in Maryland, but this much is clear: Even the poorest, most downtrodden soul should not have to pay that much for a personal loan. Lawmakers need to end this disgraceful practice immediately." -- full editorial


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