Initiative to Push Maryland’s Commercial Finance Disclosure Bill in New York and California



Maryland state senate bill SB0825 was the subject of a controversial debate last week. The bill is Maryland’s latest attempt to impose restrictions on a subset of commercial financial transactions.

State Senator Ben Kramer talked at length before the Finance Committee, arguing that opposition to the 2022 version of the bill would be futile because it is inspired by laws passed in New York and California. Apparently operating under the impression that these states had settled the issue of calculating an APR on a purchase transaction, Kramer seemed unaware (perhaps intentionally) that the two states had been unable to enact their laws. due to critical flaws in their mathematical assumptions. In the case of California, for example, the implementation of its disclosure law was delayed by almost 4 years.

The Maryland House Bill corresponding to this legislation (HB1211) has since been removed.

Sen. Kramer has led the push for regulation for three consecutive years, starting in 2020 when a related bill he introduced was called “Merchant Cash Advance Ban.”

Last modification : March 14, 2022







Sean Murray

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