With federal consumer protection efforts under assault, it’s more important now than ever for Maryland to pursue robust, far-reaching legislation to protect our residents. Instead, several bills were introduced this week that would roll back decades of strong consumer protections for Maryland families and open the door to droves of out-of-state predatory lenders.

This week, the House Economic Matters Committee and Senate Judicial Proceedings Committee heard two troubling bills:

• HB1471 sponsored by Del. Marlon Amprey would carve out an exemption from Maryland’s strong 36% rate cap for consumer loans for ‘peer-to-peer lending companies.” SoLoFund, a peer-to-peer lending company that would be exempt if HB1471 passes, paid $125,000 in fines to Maryland in 2024, for operating without a license. Notably SoLo was also sued and settled with officials in PA, CT, CA, and DC for making predatory loans with interest rates ranging from 500%-1000%. The CFPB also sued this company in 2024. If HB1471 passes, this company will not have to be licensed which means Maryland can’t investigate, sue, or enforce regulations against the company.
• SB883 sponsored by Senator Mary Dulany-James seeks to overturn decisions established in multiple Maryland Courts that clearly state that a trespass towing company cannot refuse to release a vehicle until all towing fees have been paid. This means that if your car was towed off of private property, you would have to pay all of the fines before getting it back — even if you shouldn’t have been towed in the first place. This creates perverse incentives for bad actors to tow more vehicles whether the tow is proper or not because they will be paid regardless.

Please urge your Maryland legislators to fight for consumers, and oppose these bills!