Posts Tagged ‘Maryland payday loan laws’

Maryland Payday Loan Laws

As per Maryland payday loan laws, extremely high rate payday lending programs are strictly prohibited in this state. Small loan rate cap applies here, as per which, no lenders can charge more than 33% per annum or 2.75% per month in the form of interest on just any kind of loan. If you have any complaints against a payday lender or of you just want to get more information about the laws and about your legal rights, you can contact the Maryland Commissioner of Financial Regulation. You can fax them at (410) 333-3866, give them a call at (410) 230-6100, or make a personal visit to their office, which is located at 500 North Calvert Street Suite 402 Baltimore MD 21202.

Payday Lending Is Not Illegal In Maryland; Just High Interest Rates Are Prohibited

It is very important for you to understand that Maryland payday loan laws have not made payday lending illegal in this state; the laws have only prohibited the lenders from charging unreasonably high interest rate on such loans. The maximum interest charged on such loans must not exceed 33% per annum or 2.75% per month. Lenders are also supposed to get their business registered with the Commissioner of Financial Regulation before issuing or collecting payday loans.

Maryland Is Taking Strict Actions Against Illegal Payday Loan Lenders

There are many payday loan lenders who operate their business over Internet and do not have any physical office. Such lenders often think that they are above the law and that it is not easy to take legal actions against them. But, Maryland is one of those few states that have taken strict actions against such lenders; there are specific Maryland payday loan laws regarding this. If any such illegal lender is giving you continuous calls and harassing you, you can straightaway tell them that they are doing it illegally and you are going to file a complaint with the Maryland Office of Commissioner Financial Regulation’s Enforcement Unit. You can also contact your telephone company and request them to block that number (the illegal payday lender calls from). At present, Maryland is specifically investigating MTE Financial Services and it has been found that the company has been engaged in payday lending practices quite illegally under an array of different aliases that are very popular over Internet, such as Ameriloan, NoFaxingPaydayLoan, United Cash Loans, 500 Fast Cash, and others. The unfortunate thing is that even after tracking them down to be based in Oklahoma, the law enforcement in Maryland are having difficulty in taking legal actions against them because of several legal technicalities, but things are still in the process. Consumers also have the right to sue the company and claim for compensation for the monetary loss and sufferings caused by illegal payday lending programs. The Attorney General in Maryland has also recently brought a lawsuit against “Cash-2-You Leasing”, which is a payday lending company based in the state of Maryland. The company was charging $60 of interest on a payday loan of $200 issued for a 14-day period, which means APR of 780%, which is much higher than the maximum interest rate allowed (33% per annum).

Though Maryland payday loan laws are very strict against illegal payday loan lenders, consumers cannot protect themselves well unless they are thoroughly aware of the laws applicable in this state and what kind of legal rights they have. You are strongly recommended not to borrow payday loans, but if you must borrow it, make sure that the lender (including Internet lenders) who is issuing the loan is duly registered to do such business in Maryland and not charging an APR of more than 33%.

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