Debt Reform

Total debt in the U.S. was close to $14 trillion dollars in 2019. Mortgages, student loans, auto loans, and credit cards were the main areas where Americans borrowed. Medical debt, which is growing faster than income, is another leading cause of debt. 

To protect Maryland consumers, MCRC regulates predatory and deceptive loan products, limits the ability of shoddy debt settlement businesses to take consumers money without eliminating debt, and leads statewide efforts to reform local and state debt collection policies that criminalize poverty and deepen the racial wealth gap. MCRC’s debt reform work includes research, consumer education, and policy advocacy.

Research

In Maryland, the cost of living has soared while wages have remained stagnant and despite an increase in the minimum wage, still lag far behind housing, student loans, and other costs. Eighty-six percent of low-income renters in Maryland are cost-burdened.

For too many low-income Marylanders, the debt burden becomes unmanageable and they fall behind in their payments. Maryland law provides numerous ways for creditors to collect from indebted individuals including body attachments and garnishments. Read more in our report, No Exit: how Maryland’s Debt Collection Practices Deepen Poverty & Widen the Racial Gap​.

Advocacy

Debt is a central legislative issue for MCRC and we work to create policy that protects Maryland consumers. Consumer debt including credit card, medical, and civic debt is rising as wages remain stagnant and costs for housing, healthcare, and college outpace income. This year, MCRC will expand protections for low-wage workers by increasing the amount of money they can protect each paycheck from debt collectors; expand access to and protections within charity care provided by nonprofit hospitals; and increase protections for individuals with medical debt. We will also work to expand protections for consumers faced with debts owed to the state and work to reduce predatory interest rates charged by the state. All of these policies criminalize poverty and deepen the racial wealth divide.

To learn more, or to share a story about debt, please contact us.

Past Campaigns

PAYDAY LENDING

While Maryland is a member of PaydayFreeLandia (aka the 16 states in the U.S. that have reasonable interest rate caps which limit high-cost, usurious lenders from charging 300%-1200% for small, short-term consumer loans) payday lenders try again and again to gain entrance into our state. Whenever they make one of these attempts, we activate our networks to fight back and keep them from offering high-interest, debt trap loans to low-income Maryland consumers.

Videos