Payday loans in Maryland

Are payday loans legal in Maryland?

Payday loans are not legal in Maryland. 33% APR Cap

The governing law is Md. Code Com. Law § 12-306. Maryland Office of Financial Regulation licenses lenders and takes complaints.

Why you will not find a licensed payday lender in Maryland

Payday loans are not legal in Maryland. 33% APR Cap

A company that advertises payday loans to Maryland residents is either breaking state law or claiming that the law does not apply to it, as some online and tribal lenders do. Loans made in violation of state law may be void or uncollectable, but getting your money back can still mean a fight.

Before you deal with an online lender

1. Look the company up with Maryland Office of Financial Regulation. No license, no loan.
2. Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
3. Read the agreement for the finance charge, the APR and the due date before you give out bank details.

If you cannot repay a loan in Maryland

Contact the lender before the due date and ask for a payment plan in writing. If a lender or collector breaks the rules, file a complaint with Maryland Office of Financial Regulation and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in Maryland

• Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
• A payment plan with the landlord, utility or hospital you owe often costs nothing.
• Local assistance: dial 211 for rent, utility and food programs near you.

See all payday loan alternatives or work out a loan’s price with the cost calculator.

How Maryland got here

Maryland’s consumer loan law caps interest at 33% a year on the smallest loans, and loans made by unlicensed lenders can be unenforceable.