April 22, 2009

Markell Stands Up to Financial Predators

At Child Poverty Summit, Governor unveils proposals to protect Delaware families fighting for financial independence

DOVER – Speaking to hundreds of leading advocates Wednesday at the Governor’s Summit on Child Poverty and Economic Opportunity, Gov. Jack Markell announced he will be proposing legislation to protect Delaware families from the scourge of predatory lenders.

“It is difficult for children to get off to a good start in life when their parents are in danger of losing the family home,” Markell said. “Families who fall victim to subprime loan schemes and other financial predators see their economic opportunity crumble beneath a mountain of high interest rates.”

The proposals, which the Governor will discuss next week in his address to a joint session of the Delaware General Assembly, focus on a particular type of predatory lenders: those who issue payday loans and title loans.

Specifically, the legislation would require that any payday lender who wants to set up shop in Delaware be licensed by the state and pay a $1,500 fee that will go fund financial literacy education and promotion of low-interest community-based loan programs.  The Governor’s proposal also demands a similar license and fee from title lenders and goes one step further by requiring the lenders to cease all liabilities on the loan once the family surrenders the title.

“I will ask legislators next week to stand with these families and stand against these financial predators,” Markell said. “People deserve access to jobs where their hard work can be rewarded. Families deserve the chance to become, and remain, financially independent.”