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

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

Maine Bureau of Credit Rating Protection Formal Testifies Prior To The Senate Aging Committee

WASHINGTON, DC—Even though Maine regulations prohibit the sort of abusive, really high-interest, short-term financing methods usually linked with “payday” loans, this sort of unscrupulous financing nevertheless does occur in Maine through Internet-based financing businesses, driving numerous customers even more into debt. The Special Committee on Aging, of which Senator Collins could be the Ranking Member, analyzed problems associated to payday loans and deposit advance items throughout a hearing entitled, “Payday Loans: Short-Term Solution or Long Term Problem? ”

Eric Wright, an employee Attorney for the Maine Bureau of credit rating Protection testified in regards to the prevalence that is troubling of lending that Maine customers have actually faced. In accordance with Wright, their department receives calls that are daily Mainers victimized by these on the web loan providers.

Senator Collins, whom formerly served as Maine Commissioner of expert and Financial Regulation and oversaw the Maine Bureau of credit rating Protection into the McKernan management stated, “We are lucky that Maine’s regulations prevent abusive ‘payday’ loans, that could commit borrowers to spending almost 400 per cent percentage that is annual, as well as greater, on short-term loans. Under these terms, borrowers, that are generally speaking currently struggling economically, are driven deeper into financial obligation and perhaps, has to take away brand brand brand new loans to settle old people.