Learn about the laws that control payday lending in Maryland
If you’re in need of quick cash in Maryland, you may be considering a payday loan, but there are other options available.
This guide will help you determine what type of loan is best for you.
Are payday loans legal in Maryland?
No, payday loans aren’t legal in Maryland. The Commercial Law 12-101 et. seq prohibits payday lending in all forms.
The maximum interest a small loan provider can charge is 2.75% per month or 33% per year.
If you choose to apply for another kind of loan or a line of credit, it’s very important to read all the paperwork (including all the fine print) before signing. Always have a solid plan to pay back your loan so you don’t find yourself needing to borrow more money to repay debt.
Installment loans you can apply for
Installment loans are legal in Maryland. These are consumer loans you repay over a set schedule, normally in equal installments. You might qualify for one even if you have poor credit. Keep in mind that the interest rates will be high so you face similar risks to those of getting a payday loan.
What other options do I have if I need extra cash in Maryland?
While getting a payday loan in Massachusetts is not possible, you can think about getting credit or cash in other ways. Some of your options include:
- Tribal loans. You have the option of getting a payday loan if you go through a tribal lender like SWIFT or Blue Trust Loans. Since these lenders are based on tribal land, they are considered a sovereign entity and are able to give loans despite the laws of your state.
- Apply for a credit card. Whether you have good or bad credit, there is a huge selection of credit cards worth considering if you need extra money. Credit cards also have more reasonable payments and lower interest rates.
- Payday loans from other states. If you’re in Massachusetts temporarily but are normally a resident of a state where payday loans are legal, you can apply for an online payday loan. To do this you’ll have to provide documented evidence of your residence in another state. Also make sure the lender is backed by the Online Lenders Alliance or similar.
- Pick up side work. Looking for side jobs, selling things online with a provider like eBay or LetGo, or signing up to drive with a company like Uber are some of the many ways people get extra cash when they’re in a bind. It’s a great alternative to getting a loan or credit card because there is nothing to repay.
What are the typical costs of a Maryland loan?
Several factors impact the interest you have to pay on loans, such as your credit, the amount you borrow, the lender and the loan term.
You may have to pay additional fees in different circumstances. If you don’t make a payment on time you may have to pay a late charge. If a check does not go through because of insufficient funds in your account, your lender may charge a non-sufficient funds (NSF) fee. Some lenders can also charge application fees and loan disbursement fees, and they might even charge you if you choose to repay your loan amount early.
Where else are payday loans available?
Compare payday loans in your state
Have any more questions about Maryland payday loans?
Are online payday loans legal?
No, they’re not. Maryland payday loan laws apply to out-of-state lenders who operate online.
Can I get online cash loans in Maryland?
Yes, you can. Upon your application’s approval, go through the loan contract carefully to find out if the interest rate is within the legally specified limit.
Who should I contact to file a complaint about a payday lender in Maryland?
You should contact the Maryland Commissioner of Financial Regulation.
Are auto title loans legal in Maryland?
No, they aren’t. This is because of the high interest rates and frequency of borrowers defaulting on their loans.