The Online Lenders Alliance expressed strong opposition to SB 527/HB 1270 and requested that the bills be vetoed.
One of the many benefits that online lenders provide is the flexibility to use varying terms and conditions to offer consumers capital. Should SB527/ HB1270 become law and establish a combined fees and interest rate cap of 33% on lines of credit, many will lose the flexibility to control their payment options, significantly impacting the ability of consumers to find credit.
OLA, and its state-licensed lender-members who operate in Maryland, want to engage in a dialog to address any real (or perceived) problems in this market, but simply eliminating non-bank lines of credit will hurt our current Maryland customers.
If allowed to become law SB 527/HB 1270 would reduce consumer credit options, which is why we are asking that you veto this legislation. View the full letter here.