Posted on 02/29/2008 11:35:27 AM PST by JZelle
ANNAPOLIS — Key supporters of Gov. Martin O'Malley — including the state's largest labor union — have split with him on his support of a banking bill they are calling anti-consumer.
The Maryland State and D.C. AFL-CIO, the state's largest labor union and a strong O'Malley supporter, has come out against the bill, which would allow state banks to charge fees if a borrower pays off a mortgage loan early. Progressive Maryland, a liberal advocacy group, is expected to announce its opposition next week.
"This 'Emergency Bill' would be retroactive and strip the citizens of Maryland of any right to seek redress," wrote Fred D. Mason Jr., president of the Maryland State and D.C. AFL-CIO, in a Feb. 21 letter to lawmakers. "The legislation would permit Maryland banks to force charges on the consumer — charges the court has already ruled illegal."
The Senate Finance Committee is expected to vote today on the measure, which would allow state banks to recapture closing costs they had previously waived if a consumer refinances with another bank or pays off their loan early.
The bill also would bar anyone who paid the fee from seeking damages against the banks that charged them.
Supporters of the bill say they are worried that unless state consumer-protection laws are changed Maryland banks will move to other states where they are allowed to recapture closing costs if a borrower pays off a loan early.
Mr. O'Malley, a Democrat, has been lobbying lawmakers this session in favor of the bill, which has the support of some Democratic leaders in the legislature and the state's banking industry.
(Excerpt) Read more at washingtontimes.com ...
Martin O’Malley drinks toilet water.
Maryland “Freak State” PING!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.