Seniors, veterans, and all sorts of Maine families and folks who will be doing their utmost to have by in hard times require reasonable and resources that are responsible will undoubtedly assist them over a hump. This bill would legalize an item that may perform some oppositeвЂ•line the pockets of predatory loan providers with all the valuable bucks of these that have so small to spare. We urge one to 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 executive manager of this Maine Center for Economic Policy. Our company makes use of its financial policy research and analysis to advance legitimate policy solutions that foster economic chance of Maine working families. I’m right here to testify in opposition to LD 1164, which will develop a long-lasting loan with prices well more than 200% APR on loans as large as $2,000.
This sort of financial obligation trap financing, a high-interest cousin to payday loans, is famous to be therefore bad for financially struggling People in the us that 15 states therefore the District of Columbia ban the practice by capping yearly interest levels on customer loans at 36% or less.