The companies, which loan policyholders money for auto insurance premiums and collect interest on the financing upfront, were ordered Monday to adhere to state-mandated guidelines on interest rates. The Maryland Auto Insurance Fund (MAIF) is the state’s auto insurer of last resort for individuals and businesses. Baltimore-based Insurance Billing Services and Greenbelt-based U.S. Capital Associates — were charging interest on policies that hadn’t been financed or were canceled before the loan term ended. He said the two companies were ordered to refund those fees to policyholders and pay them an additional six percent interest.
Executives with those companies could not be immediately reached Monday.
Among the companies listed in the order are: Lithicum-based Agency Services Inc.; Baltimore-based Central Acceptance Co., Inc.; Baltimore-based Gebco Insurance Associates, Inc./Crown Premium Funding Co.; Baltimore-based H&S Finance Co.; Baltimore-based Insurance Billing Services; Baltimore-based Insurance Payment Plan Inc.; Owings Mills-based Premium Finance of America, Inc.; Laurel-based Senate Acceptance Corp.; Greenbelt-based U.S. Capital Associates.
