MEASURE WOULD BAN MAILING OF UNSOLICITED LOAN CHECKS

Posted: March 10, 2015 | Front Page, Senator Valentino

“Live” checks: Bad deal that preys on elderly

AUGUSTA – A measure that prohibits financial institutions and creditors from mailing unsolicited loan offers known as “live” checks, received a public hearing in the Insurance and Financial Services Committee.

“Deceptive practices like these should be prohibited, plain and simple,” said Democratic Senator Linda Valentino, the sponsor of the measure. “These companies prey on elderly folks or those who might be down on hard times, living paycheck to paycheck, causing them to get locked into a never-ending cycle of debt.”

This bill would prohibit financial institutions and creditors from mailing unsolicited loan offers in the form of checks that when cashed by the recipient constitute acceptance of a loan. These loan offers have all the appearances of an actual check and mislead consumers into activating a loan, often with annual fees and unreasonably high interest rates, that might take years to pay off.

The Insurance and Financial Services Committee will be holding a work session on LD 455, “An Act To Prohibit Deceptive Practices Regarding Unsolicited Loans” in the coming weeks.

 

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