Maryland

ANNAPOLIS, Md. – The Maryland State Senate is scheduled to vote this afternoon on HB 1294, legislation that would exempt payday loans made through cell phone apps from the state’s usury law, which limits annual interest rates to 33% APR. "Maryland policymakers should reject this legislation, which would legalize cellphone app payday loans that regularly trap people in debt,” said...

Consumers experienced a 56% increase in checking account overdrafts after using an advance product WASHINGTON, D.C. – Today, the Center for Responsible Lending (CRL) released a report with new data showing that consumers who took out small loans using cash advance apps paid triple-digit annual interest rates, experienced high levels of repeat reborrowing, and incurred more bank overdraft fees after...

Washington, DC – After decades of protecting borrowers from high-cost, payday lenders, Maryland lawmakers are poised to eliminate longstanding consumer protections in a bill that lets nonbank earned wage advance (EWA) lenders create an industry-defined financial category that allows them to charge triple-digit interest rates and unlimited junk fees on payday-style loans to hardworking consumers. There is ample evidence, including...

The latest research from CRL suggests that for consumers who repeatedly pay fees and "tips" for expedited EWA funds through popular third-party EWA service providers like MoneyLion, Earnin and Dave, it amounts to a digital payday loan. In a survey CRL conducted in May among 300 users of direct-to-consumer EWA services, 39% said they feel like they must keep on...

Payday lenders like tax season. That’s because they know a good number of people will come to them to cash refund checks, and they will collect a nice bounty in fees. A quick Google search finds all sorts of such companies touting how easy they make it for people to get their tax money. It can be tempting for those...