Bill > S2357

This bill aims to protect consumers from unsolicited loan instruments, such as negotiable checks, money orders, or drafts that can be used to activate a loan or open a line of credit without the consumer's request. The bill prohibits the issuance of such unsolicited loan instruments, except for advances made by a financial institution as part of an existing customer relationship or a valid loan agreement. It also absolves the addressee of any liability for unauthorized use of an unsolicited loan instrument by a third party and requires the issuing institution to repair any adverse effects on the addressee's credit rating. The bill imposes a fine of up to $5,000 for each violation and grants the Commissioner of Banks the authority to implement rules and regulations, including notifying the Attorney General of any violations. Violations of the bill's provisions are considered unfair or deceptive acts under the state's consumer protection law, and the obligor has the right to rescind the contract within 10 days of cashing the negotiable instrument.

Budget and Finance

https://malegislature.gov/Bills/190/S2357