The state of Maryland passed a law in 2002 against payday loans, making the practice of borrowing and lending small dollars to consumers in exchange for a higher interest fee illegal. Any payday lenders or businesses offering these types of loan or operating in Maryland considered illegal.
Payday loans are types of loans that come with high interest rate, with typical loan term of 2 to 4 weeks. Only borrowers with regular job or source of income, of legal age, own a bank account and residents or citizen of the United States can avail of the loan.
The finance charge for payday loans are expressed in dollar and in annual percentage rate or APR, which could go as high as 300 to 1000 percent, depending on the payday lender and the state regulations or interest loan limit.
Are Payday Loans In Maryland Illegal?
The Senate Joint Resolution 7 passed by the Maryland legislature outlawed the payday loans in the state in 2002. So, any business or payday storefront offering payday loans are illegal, if one wants to provide these types of loans they must obey the Maryland laws against usury which limits the interest rate at 33 percent or at 2.75% monthly.
Is It Still Possible To Obtain Payday Loans While In Maryland?
Yes, although the state prohibits businesses from operating in Maryland, one can still obtain a payday loan online. If you need immediate cash, just browse online for a payday lender that offer loans to Maryland residents, however you will have to pay the loan according to their interest rate.
Loan Regulators in Maryland
The Office of the Commissioner of Financial Regulation is the primary regulator of financial institution in the State such as banks, check cashing businesses, and finance companies. Financial institutions must comply with the state laws and regulation, including payday lenders.Share