Bill > HB254

This bill, known as the True Lender Act, aims to prevent predatory lending practices in Maryland. It prohibits any person from engaging in "devices, subterfuges, or pretenses" to evade lending requirements, such as through personal property sale and leaseback transactions or cash rebates for pretextual installment sales. The bill also establishes that a person is considered a "lender" subject to state lending laws if they hold the predominant economic interest in the loan, market or facilitate the loan, or if the totality of the circumstances indicates they are the true lender, even if they claim to be acting as an agent or service provider for a covered lender (e.g., a national bank, out-of-state bank, or out-of-state credit union). This is intended to close loopholes that have allowed some lenders to avoid state lending regulations.

Business and Industry

Economic Matters (House)

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0254?ys=2024RS