In the latest General Assembly session, Maryland consumers scored some victories.
Consumers won the right to demand mediation in foreclosure cases. Lawmakers also tightened restrictions on payday lenders. New restrictions bar credit-service companies from charging a fee for arranging short-term loans if that would push the cost above the state’s 33% interest rate cap.
The foreclosure mediation bill was perhaps the most high-profile piece of consumer legislation in the three-month session. It was a key part of the governor’s legislative package. After months of negotiations, the final version of the bill won the backing of the state’s bankers. Consumer advocates said that the bill would help struggling homeowners.
The new law allows lenders to file for foreclosure without first having to hold the required mediation session, although they can’t sell the property until a mediation is held. The original bill would have required that mediation precede the foreclosure filing.
The legislative session also had some setbacks for consumers. Lawmakers failed to pass a bill that would have prevented auto insurers from using a driver’s credit history in setting rates.
Another bill that stalled would have let consumers find out whether arbitrators picked to handle arbitrations in consumer disputes tend to side more with consumers or with the companies being sued.
Comments on this entry are closed.