DLLR News

 

Maryland Commissioner of Financial Regulation Issues Final Order to Cease and Desist Against MyCashNow, Paydaymax and Related Payday Lenders

 

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 Twitter (@MD_DLLR), Facebook and visit our website . Get more information on EARN Maryland.