Section 12-501 – Definitions
(a) In this subtitle the following words have the meanings indicated. (b) “Account” means a retail credit account. (c) (1) “Buyer” means a person who, under a retail credit account transaction, buys goods or obtains services from a seller not principally for the purpose of resale. (2) “Buyer” includes: (i) A person who enters into a prior agreement with a financial […]
Section 12-502 – Application of Subtitle
(a) Each retail credit account established after May 31, 1967 shall comply with this subtitle. (b) (1) Notwithstanding any situs of contract specified in it, a retail credit account is made in this State and is subject to this subtitle if: (i) The seller offers or agrees in this State to sell to a resident buyer of this State; […]
Section 12-503 – Establishment of Account
(a) A retail credit account may be established by a seller or financial institution only on the request of a buyer or with his consent. (b) (1) A seller or financial institution may not discriminate solely on the basis of sex, marital status, geographic area of residence, neighborhood of residence, or age against a buyer who wishes to […]
Section 12-504 – Maximum Finance Charge — in General
(a) Notwithstanding any other statutory law, a seller, financial institution, or the successor in interest of either may charge, collect, and receive under a retail credit account a finance charge, however described, not to exceed the amounts permitted in §§ 12-505 and 12-506 of this subtitle. (b) If the date of performance or delivery of an item […]
Section 12-406 – Restrictions on Payment of Commissions, Finder’s Fees, and Points
(a) Except as permitted by § 12-405(a) of this subtitle, any commission, finder’s fee, or point shall be paid by the lender, and may be paid only to: (1) A licensed real estate broker; (2) A lawyer licensed to practice law in the State; or (3) A licensee. (b) An agreement to pay a commission, finder’s fee, or point may […]
Section 12-505 – Maximum Finance Charge — Closed End Account
(a) In a closed end account, the finance charge may not exceed the greater of: (1) An amount computed using the following annual simple interest rates of finance charge: (i) 22 percent on that part of the outstanding balance not exceeding $1,000; and (ii) 18 percent on that part of the outstanding balance exceeding $1,000; or (2) A minimum charge […]
Section 12-407 – Duties of Lender
(a) (1) In this section the following words have the meanings indicated. (2) “Commissioner” has the meaning stated in § 12–301(b) of this article. (3) “Cost of the loan” means the total amount of: (i) As nearly as the same can be determined, the charges payable by the borrower for the loan under §§ 12–405(a) and (b) and 12–410 of […]
Section 12-505.1 – Maximum Finance Charge — Closed End Account — Refinancing at Higher Rate
Any closed end account made prior to July 1, 1982 which is refinanced at a higher rate pursuant to § 12-505(a)(3) of this subtitle must comply with the following requirements: (1) The holder must give the following disclosure in writing to the buyer prior to the execution by the buyer of the new retail credit account […]
Section 12-407.1 – Form for Secondary Mortgage Loan; Required Statements; Charges Permissible Under 12-404.1; Compliance With 12-401(i)(3)
(a) The Commissioner shall develop and prepare a form that each lender shall furnish to an applicant for a secondary mortgage loan. The form shall state the following: (1) The purpose for which the loan is to be used; (2) A disclosure that, if the loan is for a commercial purpose, the borrower shall forfeit certain rights. (b) The […]
Section 12-505.2 – Maximum Finance Charge — Closed End Account — Change in Finance Charge During Term of Account Prohibited
A seller or holder may not enter into a closed end retail credit account agreement, providing for an initial rate of finance charge pursuant to § 12-505(a)(3) of this subtitle, which contains a provision that permits the seller or holder to increase or decrease the applicable rate of finance charge from time to time during […]