Senator Collins’ Committee Examines Predatory “Payday” Loans Issued by Online Lenders

Maine Bureau of Credit History Protection Formal Testifies Before The Senate Aging Committee

WASHINGTON, DC—Even though Maine guidelines prohibit the type of abusive, actually high-interest, short-term funding practices often associated with “payday” loans, this specific unscrupulous funding nonetheless occurs in Maine through Internet-based funding organizations, driving numerous customers further into economic responsibility. The Special Committee on Aging, of which Senator Collins will be the Ranking Member, analyzed dilemmas connected to pay day loans and deposit advance products and services during a hearing entitled, “Payday Loans: Short-Term Solution or Long Term Problem? ”

Eric Wright, a member of staff Attorney when it comes to Maine Bureau of credit history Protection testified regarding the unpleasant prevalence of online financing that Maine consumers have faced. According to Wright, their division gets phone calls that are day-to-day Mainers victimized by these on line financial institutions.

Senator Collins, whom previously served as Maine Commissioner of pro and Financial Regulation and oversaw the Maine Bureau of credit history Protection inside the McKernan administration reported, “We are fortunate that Maine’s legislation prevent abusive ‘payday’ loans, which may commit borrowers to investing almost 400 percent portion this is certainly yearly, and in addition greater, on short-term loans. Read more…