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STATEMENT ON SIGNING SENATE BILL 34
(CONSUMER PROTECTION DIVISION)

SENATE BILL 42

(REVOLVING CREDIT)

AND SENATE BILL 566

(SECOND MORTGAGE BILL)

April 21, 19G7

Before me today is a package of three bills which should go far in
protecting the interests of the buying public in Maryland.

Senate Bill 42 regulates the amount of interest that may be charged
on so-called "Revolving Credit" accounts in retail stores and on install-
ment sales. It reaches me after many years of legislative battles, and it
still bears some of the scars of those conflicts. But rather than veto the
bill for its imperfections, as some would have me do, I am happy to
sign it and work toward strengthening the law in the future.

Senate Bill 566 is the so-called Second Mortgage Bill, another subject
of lively controversy. It brings under the strong control of the Banking
Commissioner a thriving, unregulated industry in which thousands of
Marylanders have been the victims of high interest rates. The bill also
sets a limit of 12 per cent a year than can be charged on the unpaid
balances of such mortgages.

And, finally, Senate Bill 34 creates the new Division of Consumer
Protection under the discretion and control of the Attorney General.
It provides generally for the regulation of fraud and of false advertising
to consumers by unscrupulous merchants who would deceive and take
advantage of an unsuspecting public. These, fortunately, are in a
minority, but it is past time that they were brought under the watchful
eye of the law.

It is with pleasure that I affix my signature to all three of these bills
enacted in the interest of Maryland purchasers.