Seniors, veterans, and all sorts of Maine families and people who will be doing their utmost getting by in hard times require fair and accountable resources that will really help them more than a hump. This bill would legalize an item that may perform some oppositeвЂ•line the pouches of predatory lenders with all the valuable bucks of these who possess therefore small to spare. We urge you to definitely reject this bill.
Good Senator Whittemore, Representative Lawrence, and members of the Joint Standing Committee on Insurance and Financial Services afternoon. I am Garrett Martin and I also have always been the director that is executive of Maine Center for Economic Policy. Our company utilizes its financial policy research and analysis to advance legitimate policy solutions that foster economic chance for Maine working families. I’m right here to testify in opposition to LD 1164, which will produce a loan that is long-term prices well more than 200% APR on loans as large as $2,000.
This kind of financial obligation trap financing, a https://internet-loannow.net/title-loans-ca/ cousin that is high-interest payday advances, is well known become therefore damaging to financially struggling People in the us that 15 states plus the District of Columbia ban the practice by capping yearly interest levels on customer loans at 36% or less. Maine would fare better by our residents by cleaning the predatory lending that does exist inside our state than by starting it as much as this particular harmful payday financing. This system will lure financially struggling borrowers whom think these are generally finding a hand that is helping a deep debt trap that is guaranteed in full to have them entangled for months or years.