Maryland Payday Loan Laws

The state of Maryland has just one payday loan law. They are prohibited. Any facilities that offer, suggest or advertise payday loans are operating illegally. Many consumers were scammed out of their money by being charged ridiculous finance charges and interest rates. Maryland’s government put a stop to it as quickly as they could.

In Maryland, you can obtain a small personal loan from a bank, but that is it. If your employer offers advances, you can go that route but you will not be able to obtain an actual payday loan. Some Maryland residents have sought out online resources. They too, have been scammed out of their money because these online lenders know that it is illegal in Maryland to obtain or offer a payday loan.

Any online company that shows a location base in Maryland is operating illegally. Maryland, along with Georgia and Massachusetts are the only states that have banks that will work with out of state resources to be able to offer a payday type loan through them. Consumers must be aware of the dangers of obtaining a payday loan from an online source. They too, can operate fraudulently. Consumers can be taken advantage of. The interest rates are insanely high when using an online payday loan source. There is a lot of fine print that many consumers overlook in an online source. Not all of them can be trusted; in fact, there are only a handful that can be considered to be legitimate. Only banks can offer anything that resembles a payday loan through an approved affiliate source.

Any lender in Maryland, or affiliated with a Maryland bank, cannot charge more than 33% interest on a loan that is $6,000 or less. The thing that hurts Maryland residents in this respect is that because payday loans are prohibited, residents are left with no other choice than to fall victim to these high interest bank loans. Along with these types of loans comes credit approval and income requirement approval. A bank is not permitted to loan money to any person that is unable to repay it. This would be considered bad business practices and loan fraud.

We should give kudos to the state of Maryland for their proactive assessment of payday loans. The government there understands that consumers get sucked in to these convenience loans and it only causes them to fall deeper in debt.

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