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This week, the Legislature held work sessions on both LD 353, which would establish a commission to recommend methods for preventing deed fraud, and LD 314.
LD 353 was tabled by the committee, pending new language that would update the recommendations for who should serve on the commission. The committee indicated they intend to add a seat for a member of the financial services industry, which was what the Maine Credit Union League asked for in the testimony during the public hearing. If approved, the bill would have an emergency preamble, allowing the commission to be formed right away. However, as currently drafted there is a small fiscal note attached so it is subject to budget considerations. There was some interest by the committee in making amendments to remove the fiscal note, potentially making it more likely for the commission to be created.
LD 314, An Act to Establish Consumer Protections Regarding Small Dollar Loans, has a misleading bill title. As shared in the League’s testimony, the bill would open the door for out-of-state rates and rent-a-bank schemes. This legislation was supported by the company OppFi, and it was the third time in recent years they have attempted to pass this measure. The committee unanimously voted Ought Not to Pass, but committee members are interested in investigating options to support access to credit for subprime borrowers. They will be sending a letter to FAME, the Bureau of Financial Institutions, and the Consumer Credit Protection Bureau to ask for recommendations to support this goal. Expanding credit access and providing alternatives to high-cost payday lending is a topic we have been talking about with consumer advocates during the off-session. If you have recommendations for a policy that could assist with this goal, please contact Krista Simonis, Director of Governmental Affairs, at ksimonis@mainecul.org.
For those credit unions preparing to travel to GAC this weekend, the League looks forward to collaborating with and advocating alongside you in Washington, DC.