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H.B. 438
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VETOES
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grantor send a second notice to a borrower if the amendment increases the interest,
finance charges or other fees and charges; and (3) the requirement that the
Commissioner of Financial Regulation approve the form of the notice to the borrower.
The notice provisions in Maryland law are designed to inform a consumer of certain
substantive changes to the terms of a credit plan agreement. Many consumers would
expect to be informed of a change in the manner of the computation of interest,
finance charges or other fees and charges. Further, it is not unreasonable to require
that the Commissioner of Financial Regulation approve the form of the notice to the
borrower. This requirement is not unduly burdensome on the credit grantor and
provides some assurance to the consumer that someone other than the credit grantor
believes that the notice is comprehensible and informative. While many of the notice
forms now in use may be uniform, 1 expect that is the result of prior regulation by the
Commissioner. In short, the benefits of the notices to borrowers in current law are not
outweighed by the desire of some credit grantors to obtain relief from what they may
consider minor, insignificant consumer protections. For the above reasons, I have
vetoed House Bill 438.
Sincerely,
Parris N. Glendening
Governor
House Bill No. 438
AN ACT concerning
Credit Regulation - Credit Grantor Revolving Credit Provisions -
Amendment of Plan Agreement
FOR the purpose of repealing a requirement that a credit grantor give a certain notice
to a borrower when the credit grantor amends an agreement governing a
revolving credit plan if the amendment has the effect of altering the manner of
computing certain fees and charges; repealing a requirement that the credit
grantor send a second notice of an a certain amendment of a plan agreement to
the borrower; repealing a requirement that a certain notice be sent in a certain
manner; altering a requirement that a certain statement in a certain notice be
in a certain point type; repealing a requirement that the Commissioner of
Financial Regulation approve the form of a certain notice; repealing the
limitation that certain procedures for amending a plan agreement do not apply
to extensions of credit secured by real property; providing for the application of
this Act; and generally relating to amendments by credit grantors of agreements
governing revolving credit plans.
BY repealing and reenacting, with amendments,
Article - Commercial Law
Section 12-912
Annotated Code of Maryland
(2000 Replacement Volume and 2001 Supplement)
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