Such is the case in Maryland where the law as it now stands does not give the Hank Commissioner the right to pro- mulgate rules and regulations. The result is a thriving high- rate business is being conducted. With the exception of a few outstanding states such as Massachusetts, Connecticut and Illinois, all states are backward in the matter of supervision. Some of the essential factors to good supervision are as follows: 1.
An adequate system of reporting the business transacted such as is required in the Uniform Report or the Massachusetts reports found in the appendex. Periodic examinations of the loan offices themselves. Periodic surveys mace by the licensing official of the business transacted within the state with the intent to change borrow money online Oklahoma the rate of interest if it seems advisable, or correcting existing evils.
It was the result of the activities of the Boston Chamber of Commerce which succeeded in having the Committee on Banks and Banking of the Massachusetts Bouse of Represen- tatives commissioned to investigate the small loan business conducted in the state of Massachusetts. The establishment of the office of supervisor of small loan agencies with powers to license and examine those engaged in the small loan business and to refuse or revoke such licenses. That annual reports should be made to the supervisor who in turn should report annually to the legislature. That, the supervisor should "establish the rate of interest to be charged, having due regard however to the amount of the loan and the nature of the security and the time for which the loan is made, and that payday loans online same day North Dakota said rate shall not exeeed in Oregon fast loans any event more than 3 per cent a month. That violation of the Wyoming need cash provisions of the act or the regulations of the supervisor should be punishable by fine or impri sonment. Cavanaugh, the investigator of the Massachusetts Banking Commission, sponsored the bill, and it was en- dorsed by the boston Chamber of Commerce, the boston Legal Aid Society, and other social organizations. In spite of terrific lobbying against the bill, it was passed, and became a law. Gerry brown was appointed the first Small Loan Supervisor by the Governor with the consent of the Executive Council on September 20, 1911. To him fell the task of organizing an office to supervise and regulate the small loan business coming under the newly enacted law. Also to him fell the burden of inaugurating some reform in the then very corrupt small loan business, he was new in the field, and he had no experience to guide him. In view of the circumstances -71- prevailing when he assumed payday loans online same day North Dakota office, 1 think it is only fair to say that those mistakes were excusable, hut they were very costly mistakes from the point of view of inaugurating reform. Ror the "expense of payday loans online same day North Dakota making and securing a loan," a lender may make a charge not exceeding 10 per cent of the amount borrowed except as provided in c, Rule 10, but no such expense charge shall exceed. This percentage may be paid by the oor rower out of the sum borrowed or it may be added to the amount of the loan and become a part of the principal. Charges are not to be imposed upon a borrower who makes a secured loan more often than once in four months or who makes an unsecured loan more often than once in three months. Information, Rules and Regulations relating to the business of Making Small Loans. This was necessitated by the amendaant as carried by the Law of 1919 which, among other things, transferred the duties of the office of the office of Supervisor of Loan Agencies to the newly created Department of banking and Insurance, however, the supervision of the small loan business still, in fact, comes under the Supervisor of Small Loans which is made possible by General. An exact copy of the law as it stands today will be found in the appendix. Before leaving the law itself to take up the supervision of the small loan business in this state, certain other amendments should be noted. Penalty imposed not only for violation of act or regulations but also- for violation of any rule or order made by the supervisor. If a person pays a greater rate of interest or amount for expenses than is allowed he can file such a complaint with the supervisor who can order the lender to repay such excess amount. The following amendments were added in 1913 Section3. Further clarifyine those coming under law to include " any person directly or indirectly 1. In 1934 the following paragraph, was added to Section 3 of the 1911 law, or section 96 of tne 1921 revised laws, further clarifying those coming under the law: "If, after all deductions or payments, whether on account of interest, expenses or principal made substantially comtemporaneously with the making of the loan, the amount retained by the borrower be three hundred dollars or less, the transaction shall be deemed to be a loan in the amount of the sum so retained by the borrower after such deduc- tions or payments, notwithstanding that the loan be nominally for a greater sum. As payday loans online same day North Dakota has been previously stated, a complete copy of this law is included in the appendix of this study. Supervi sion The supervision of the licensees under the Massachusetts Small Loan Law as originally enacted in 1911 was vested in the "Supervisor of payday loans online same day North Dakota Loan Agencies. An amendment as carried by the Law of 1919 transferred the duties of the office of Supervisor of Loan Agencies to the newly created Department of hanking and Insurance. Subsequently, the Commissioner of hanks was empowered to appoint with the approval of the governor and council a Supervisor of Loan Agencies to supervise the licensees under the Small Loan Law..
Thus, in fact, the office of the Supervisor of Loan Agencies has con- tinually existed since the first small loan law was en- acted in 1911.
Massachusetts, accordingly, has the long- est history in the regulation and supervision of the personal finance business. Small wonaer, then, that other states have found it advantageous to copy the Massachusetts "way of doing things. When certain evils were found to exist, they were remedied, either by amendment or by rules issued by the Supervisor.
These rules became orders, and violators of them suffered the same penalty as violators of the act itself.