Maryland issues cease and desist order against online payday lenders

Maryland's financial regulation division announced Tuesday that it had issued a final cease and desist order against online payday lenders and the owner of these businesses.

The division initially issued an order in late July against Carey V. Brown and his companies, MyCashNow, Paydaymax, and other related parties, accusing them of providing loans that violated Maryland's interest rate cap. The state said the loans carried annualized rates of more than 200 percent, exceeding the Maryland's maximum limit of 33 percent on small loans.

Mark Kaufman, commissioner of Financial Regulation, said some of these lending operations may have shut down since then, but he was concerned efforts might be made to collect on these illegal loans, which also isn't permitted.

In addition, the commissioner and the Maryland Collection Agency Licensing Board issued a final order against two collection agencies owned by Brown. Credit Payment Services and Credit Protection Depot were trying to collect on loans although not licensed to do so, state officials said.

Brown, of Tennessee, could not be reached for comment. The websites of MyCashNow, Paydaymax and say the sites are not available.

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