Commissioner Continues Fight Against Illegal Online Lending
BALTIMORE, MD (September 17, 2013) – The Maryland Department of Labor, Licensing and Regulation’s (DLLR) Division of
Financial Regulation announced today that it issued a final order to cease and desist against online lenders MyCashNow,
Paydaymax, DiscountAdvances.com and other related parties as well as their owner, Mr. Carey V. Brown. Commissioner of
Financial Regulation Mark Kaufman originally issued a summary order against the parties on July 29, 2013, to cease and
desist from making unlicensed consumer loans and from collecting or attempting to collect on such loans previously made
to Maryland consumers.
“These actions continue our ongoing battle against illegal online lending activity,” noted Commissioner Kaufman. “Following
our original order in July, we have heard reports that these entities may have shut down in the face of regulatory scrutiny by our
state and others. Regardless, efforts to collect these illegal loans may continue, and today’s action serves notice that such efforts
are also not permitted.”
MyCashNow, Paydaymax and DiscountAdvances.com purported to be offshore lenders and had originated scores of loans via the
internet to Maryland consumers in violation of the state’s licensing requirements and with interest rates above 200%, including
several transactions with rates over 500% - all well above the state’s usury limits.
In conjunction with this action, the Commissioner and the Maryland Collection Agency Licensing Board issued a final order
against related collection agencies, Credit Payment Services and Credit Protection Depot, which are also owned by Mr. Brown. The
entities were engaged in efforts to collect the loans without a collections license. Moreover, they are prohibited by law from
collecting on loans illegally made by unlicensed lenders and in violation of the state’s usury laws. The Commissioner and the
Collection Agency Licensing Board issued an advisory regarding such activity in 2009.
A copy of the order is available on the DLLR website
(PDF document, 701KMB, download
Adobe Acrobat for free).
The Department of Labor, Licensing and Regulation protects and empowers Marylanders by safeguarding workers,
protecting consumers, providing a safety net and cultivating a thriving workforce that can meet the demands of
Maryland's dynamic economy. For updates and information, follow DLLR on
(@MD_DLLR), Facebook and visit our
website . Get more information on EARN