Bill > HB1471

This bill establishes the Innovative Financial Product or Service Certification Program to be administered by the Commissioner of Financial Regulation, with a primary goal of encouraging innovative financial services that enhance lending and access to credit in Maryland. The program specifically focuses on peer-to-peer lending services, defining them as digital platforms that help consumers obtain small personal loans ($50 to $500) from individual lenders, with features like borrower credit scoring, user-defined loan terms, and optional "appreciation tips" paid by borrowers. The Commissioner is required to issue certifications to qualifying peer-to-peer lending services and may also certify other innovative financial products or services that enhance consumer credit access. Certified entities will be exempt from certain state laws related to lending, licensure of lenders, and collection agencies. The Commissioner has the authority to suspend or revoke certifications if a provider engages in unfair, abusive, deceptive, or fraudulent practices, and is mandated to develop regulations to implement the program. The bill is set to take effect on October 1, 2025, providing a clear framework for innovative financial service providers to operate with reduced regulatory barriers in Maryland.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1471?ys=2025RS