Seniors, veterans, and all Maine families and folks that are doing their finest to have by in hard times require reasonable and resources that are responsible will certainly assist them more than a hump. This bill would legalize a product which will do the oppositeвЂ•line the pouches of predatory loan providers with all the precious bucks of the who possess therefore small to spare. We urge you to definitely reject this bill.
Good afternoon Senator Whittemore, Representative Lawrence, and users of the Joint Standing Committee on Insurance and Financial Services.
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 window of opportunity for Maine working families. I will be right right here to testify in opposition to LD 1164, which will develop a long-lasting loan with rates well more than 200% APR on loans as large as $2,000.
This sort of financial obligation trap financing, a high-interest cousin to pay day loans, is famous become therefore damaging to financially struggling People in america that 15 states additionally the District of Columbia ban the training by capping annual interest levels on customer loans at 36% or less. Maine would fare better by our residents by clearing up the predatory lending that does exist within our state than by starting it as much as this particular harmful payday financing. This system will attract financially struggling borrowers who think these are generally getting an assisting hand in to a deep financial obligation trap this is certainly going to have them entangled for months or years.