💨 Abstract

Consumer protection experts in Maryland are criticizing a new law on "earned wage advances," or payday loans via smartphone apps, which goes into effect in October. They argue the law, House Bill 1294, does not sufficiently address predatory lending practices. The bill caps fees at $7 but allows repeated tip requests disguised as "optional tips," lacks a monthly borrowing limit, and exempts these apps from key unfair practices and discrimination protections in the Small Dollar Loan Act.

Courtesy: Luke Lukert