Maine Bureau of Credit Rating Protection Certified Testifies Before the Senate Aging Committee

WASHINGTON, DC—Even though Maine laws and regulations prohibit the sort of abusive, extremely high-interest, short-term financing techniques usually linked with “payday” loans, this kind of unscrupulous financing nevertheless does occur in Maine through Internet-based financing organizations, driving many customers further into debt. The Special Committee on Aging, of which Senator Collins may be the Ranking Member, examined dilemmas associated to payday loans and deposit advance items within a hearing entitled, “Payday Loans: Short-Term Solution or Long Term Problem? ”

Eric Wright, an employee Attorney when it comes to Maine Bureau of credit rating Protection testified concerning the prevalence that is troubling of financing that Maine customers have actually faced. Based on Wright, his division receives day-to-day phone calls from Mainers victimized by these on the web loan providers.

Senator Collins, who formerly served as Maine Commissioner of pro and Financial Regulation and oversaw the Maine Bureau of credit rating Protection within the McKernan management stated, “We are lucky that Maine’s guidelines prevent abusive ‘payday’ loans, that could commit borrowers to spending almost 400 % yearly portion prices, as well as greater, on short-term loans.Read More