Maine bill proposed by Troy Jackson could allow high interest rates for online lenders
1 report, 1 independent
Updated Oct 13
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What happened
Troy Jackson, while serving as Maine Senate president, introduced legislation that would allow online lenders to bypass Maine's interest rate caps when offering small-dollar loans to borrowers with poor credit. The bill, introduced in February 2022, was framed as a measure to "Establish Consumer Protections Regarding Small Dollar Loans".
From freebeacon.com
Why it matters
The current 2021 law requires out-of-state lenders to adhere to a 30 percent interest rate cap on loans of $2,000 or less. Jackson's proposed bill would allow these lenders to skirt that cap, potentially enabling them to charge significantly higher rates, sometimes close to 200 percent.
From freebeacon.com
Who's involved
- Troy JacksonIntroduced legislation allowing online lenders to bypass state interest rate caps
- Todd SchwartzCEO of OppFi, a Chicago-based online lender that benefits from high-interest loans
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- How could Troy Jackson's bill allowing higher interest rates affect Todd Schwartz?OppFi may benefit from Maine bill allowing higher interest ratesPossible
- How could Troy Jackson's financial legislation affect Susan Collins' political campaign?Jackson's financial bill fuels debate in Maine Senate racePossible
- Senate may consider bill allowing lenders to evade interest rate capsThe senate must decide if Jackson's bill allows high-interest lenders to evade state capsPossible