Bill > S138

This bill aims to provide consumer protection against unsolicited loan instruments, such as negotiable checks, money orders, or drafts that may be used to activate a loan or open a line of credit without the consumer's solicitation. The key provisions include: 1) Prohibiting the issuance of unsolicited loan instruments, with exceptions for advancing money or credit through a customer relationship or a valid mortgage/loan agreement. 2) Releasing the addressee (intended recipient) from liability for unauthorized use of an unsolicited loan instrument by another party, and requiring the issuing institution to repair any adverse credit effects and inform the addressee of the steps taken. 3) Prohibiting financial institutions from transferring funds from the addressee's account to cover debts resulting from unauthorized use of an unsolicited loan instrument. 4) Imposing a fine of up to $5,000 per violation for knowingly sending an unsolicited loan instrument. 5) Granting the addressee the right to rescind the contract within 10 days of cashing the negotiable instrument. 6) Establishing criminal penalties for converting an unsolicited loan instrument into cash or equivalent value with intent to defraud.

Labor and Employment

https://malegislature.gov/Bills/191/S138