Dear Friends:

This week the City Council’s Judiciary And Legislative Investigations Committee will hold an informational hearing on Council Bill LO08-0004 Maryland Automobile Insurance Fund
- MAIF - Current Practices and Proposed Changes. The Maryland Automobile Insurance Fund (MAIF) was created by the state legislature in 1972 to provide car insurance for Maryland residents who cannot obtain it elsewhere in the private insurance market. Current state law prohibits MAIF from offering installment plans on insurance premiums as most private insurers do, so MAIF customers must pay their full annual premiums in advance. Naturally, most can’t afford this lump-sum payment, so they must turn to premium finance companies (PFC's), whose sole purpose is to finance MAIF policies. Not only do these finance companies charge annual interest rates as high as 30%, they collect all of their interest first. Once all of the interest is collected, they have no incentive to retain the customer. Sixty percent of MAIF cancellations are at the request of the finance companies. Once they are canceled, they come back to MAIF and have to pay all over again.

In our increasingly volatile economy, we must prevent predatory lenders from preying on our most vulnerable citizens. Premium finance companies are making a killing on the backs of citizens least able to defend themselves. With large populations of working poor residents, Baltimore City and Prince George's County are disproportionately impacted by the predatory practices of premium finance companies.

MAIF is the only insurance company in Maryland prohibited by law from offering an installment payment option to its policyholders. Proposed legislation in Annapolis would enable MAIF to offer installment billing and therefore help policyholders avoid the predatory lending of these premium finance companies. To illustrate the industry’s power, if you purchase an insurance policy using money loaned by a PFC and you miss a payment, they can take back your insurance policy retroactively, get money back from the insurance company, and subject you to fines for driving uninsured, in violation of Maryland law. This is an unspeakable burden to bear, and is a tragic injustice for our working poor.

Of course the Insurance Code is State law, and the City Council does not have jurisdiction. But as local representatives of the people most affected by these practices, the City Council has an enormous stake in putting a stop to the predatory lending practices of the premium financing companies. These practices directly impact poor working families in Baltimore, but the resulting increase in insurance premiums is borne by all Maryland residents.

If you are a current or former MAIF policyholder with a story to tell about your premium finance company nightmare, I urge you to share your experiences with us at the City Council hearing this Tuesday at 11:00 in the City Council Chamber. Also in attendance will be MAIF's Executive Director and State Senator Catherine Pugh, who is introducing the legislation in Annapolis.

Stephanie Rawlings-Blake
President, Baltimore City Council

City Council This Week

Tuesday, February 19, 2008

Hearing: Judiciary And Legislative Investigations Committee, James B. Kraft – Chair
10:00 AM Du Burns Council Chamber, 4th floor, City Hall
07-0004 Lead Risk in Housing - Relocation from Non-Compliant Property

Wednesday, February 20, 2008

Hearing: Executive Appointments Committee, Robert Curran – Chair
5:00 PM Du Burns Council Chamber, 4th floor, City Hall
Appointed members of the newly-created Commission on Sustainability
This hearing will be broadcast live on TV25.

Thursday, February 21, 2008

Hearing: Judiciary And Legislative Investigations Committee, James B. Kraft – Chair
4:00 PM Du Burns Council Chamber, 4th floor, City Hall
08-0008R School Based Budgets for the Baltimore City School System

MTA Bus Route Modifications Take Effect Sunday, February 17 Effective February 17, 2008 MTA will implement route modifications to 10 Local Bus lines throughout the Baltimore Region. In addition, a new line, the No. 6, will be initiated and the M-9 will be replaced with the Nos. 56 and 59 Lines. New timetables will be issued for the following Local Bus Line #'s: 3, 11, 16, 27, 36, 55, 61, 77, and 98 (Hampden Shuttle). Also, on this date, the Light Rail Yellow Line (Timonium to Cromwell Station/Glen Burnie) will begin making all weekday off-peak and weekend/holiday trips to Hunt Valley. In addition, new timetables will be issued on the following lines to reflect schedule changes effective February 17, 2008: Local Bus Line #'s: 5, 7, 10, 17, 20, 23, 35 and Light Rail. The new timetables are now available online at http://www.mtamaryland.com/. They will soon be available at MTA’s Downtown Transit Store and at regular timetable distribution points. Riders can also request that timetables be mailed to them by calling 410-539-5000.

Friday, February 15

Baltimore City Teen Night
North Harford Recreation Center, 6800 Hamlet Ave., 410-396-6707, 8pm-midnight
Roosevelt Recreation Center, 1221 W. 36th St., 410-396-6050, 8pm-midnight
Madison Square Recreation Center, 1400 E. Biddle St., 410-396-9284, 8pm-midnight
Participate in fun and safe activities designed for teens, by teens. Enjoy music, dancing, games, fashion shows and more. Free and open to teenagers 14-17.

Saturday, February 16

Money Power Day '08
Baltimore Polytechnic Institute, 1400 W. Cold Spring Lane, 10am-3pm. Money Power Day is a FREE annual event providing Baltimore City residents and workers with quality financial services like free tax preparation, free credit report, customized financial planning, housing counseling, credit counseling. Find out more and register at http://www.moneypowerday.org/

Federal Hill's Fest-of-All
Baltimore Museum of Industry, 1415 Key Highway, 7-11pm. Celebrate Mardi Gras, Valentine's Day and everything Federal Hill at the same time. Open bar and the culinary delights of Federal Hill's restaurants. Live music by Love Seed Momma Jump. Fashion show by area retailers, silent auction and raffle. Tickets $75 in advance, $90 at the door. Tickets online at http://www.historicfederalhill.org/

Sunday, February 17

Winterfest 2008: A Celebration of Diversity
Northwestern High School, 6900 Park Heights Ave., 1-5pm. Arts and crafts, entertainment, free giveaways, local vendors, refreshments, book fair. Sponsored by Neighborhood Associations of Park Heights, Mayor's Office of Neighborhoods, Jewish Community Center of Greater Baltimore. Contact Derrick Lennon at 410-365-3792 or derricklennon@myglen.org.

Monday, February 18

PRESIDENT'S DAY - CITY HOLIDAY: No municipal trash collection, parking meters in effect.

A Night of Appreciation for Youth Coaches in Baltimore City
Melba’s, 3126 Greenmount Ave., 6pm-10pm. Event to thank coaches of youth teams for dedication and mentorship. 410-366-6536, coachrsvp@yahoo.com.

Accounting Workshop
Small Business Resource Center, 1101 E. 33rd St., Suite C307, 9:30 am. Get professional instruction on how to maintain your business accounts. The workshop includes instruction on QuickBooks computer software. Call 443-451-7160 to register.

Thursday, February 21

Councilman Bernard “Jack” Young hosts Community Income Tax Preparation Seminar
Pratt Library - Orleans Street Branch, 1303 Orleans Street, 6:00pm.
Attendees will be exposed to information on how to prepare and file income taxes. The following topics will be discussed:

• Work-related income tax credits
• Income tax credits for homeowners and renters
• Where to get income taxes filed at no cost
• How to proceed with IRS disputes

The meeting is open to the public. Members of the community will have the opportunity to hear from Certified Public Accountants and other trained professionals. To confirm attendance, please contact Beverley Simpson at 410-396-4811 or André Baldwin at abaldwin@baltimorecitycouncil.com

MLA Arts Brief Launch Party
Lemongrass and Tsunami. 1300 Bank Street, 6-9 pm. Celebrate the inaugural issue of MLA Arts Brief with special guest sculptor James Earl Reid. To attend, please RSVP to smalltimoreevents@gmail.com. Maryland Lawyers for the Arts provides pro bono legal assitance to income-eligible artist and arts organizations, and educational workshops and seminars on topics affecting artists.