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Friday, October 10, 2008
Auto Insurance Loan Companies Deny Overcharging Customers
DAVID HILL ―
Southern Maryland Online
Nine companies accused of illegally collecting excessive interest on insurance premium loans to high-risk drivers are fiercely denying the allegations.
The Maryland Insurance Administration charged Monday that nine premium finance companies violated state law by loaning premium payments to Maryland Automobile Insurance Fund members and collecting interest at rates above the maximum 1.15 percent per 30 days. MIA ordered the companies to “cease and desist their unlawful methods.”
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