Consumer Loan Plan Killed in Md: Consumer Loan Bill Loses in Md. House
Maryland House of Delegatesj defeated by seven votes today I legislation that would have; substantially increased inter-, est rates on some consumer! loans and, according to its op-> ponents, given the stateÛªs loan| companies a multi-million dol-' lar bonanza.</br></br>The vote was 65 to 55 in favor of the bill, seven less than the 72 necessary to pass it and send it to the Senate.</br></br>The bill would have lowered the maximum interest rate on some consumer Joans of less than $500 from 34 per cent to 30 per cent a year. For the majority of consumer loans made by finance companies, ranging up to $3,500 it would have substantially increased interest rates, in one case* almost doubling them.</br></br>would have jumped from 12 per cent, or $99 a year, to 23 per cent, or $197 a year. Interest on a $1,000 loan would have increased from 16 per cent, or $87 a year, to 27 per cent, or $149 a year.</br></br>At stake was the interest rates of almost 400 Maryland loan companies with more than $300 million in loans outstanding, many of them to low income people who are unable to obtain bank loans.