Section 12-309 – Loan to Buy Certain Goods or Services Subject to Certain Defenses
(a) If a lender makes a loan for the purpose of enabling a borrower to buy goods or services used primarily for personal, family, or household purposes, then, in addition to any other claim or defense which the borrower has under this subtitle, the lender is subject to the claims and defenses of the borrower against […]
Section 12-310 – Collateral Sale, Purchase, or Agreement in Connection With Loan
(a) For purposes of this subtitle, any profit or advantage which a person contracts for, collects, receives, or obtains by a collateral sale, purchase, or agreement in connection with negotiating, arranging, or making a loan is considered a charge for the loan. (b) This section does not apply to any commission, dividend, retrospective rating credit, or other […]
Section 12-301 – Definitions
(a) In this subtitle the following words have the meanings indicated. (b) “Commissioner” means the Commissioner of Financial Regulation. (c) “Lender” means a licensee or a person who makes a loan subject to this subtitle. (d) “Licensee” means a person who is required to be licensed under Title 11, Subtitle 2 of the Financial Institutions Article, the Maryland Consumer […]
Section 12-302 – License Required Unless Exempt
A person may not engage in the business of making loans under this subtitle unless the person is licensed under or is exempt from the licensing requirements of Title 11, Subtitle 2 of the Financial Institutions Article, the Maryland Consumer Loan Law — Licensing Provisions.
Section 12-303 – Application of Subtitle
(a) (1) This subtitle applies to a loan of $25,000 or less made for personal, family, or household purposes. (2) Except as provided in paragraph (3) of this subsection, this subtitle applies regardless of: (i) Whether the transaction is or purports to be made under this subtitle; (ii) Whether the transaction is or purports to be an installment loan; (iii) The […]
Section 12-304 – Advertising
(a) A lender may not directly or indirectly print, publish, distribute, or broadcast any false, misleading, or deceptive statement regarding the rates, terms, or conditions of a loan. (b) (1) If charges or rates of charges are advertised by a licensee, the Commissioner may require him to state them fully and clearly in any manner the Commissioner considers […]
Section 12-305 – Discrimination Prohibited
(a) In granting or denying an application for a loan, a licensee may not discriminate against any loan applicant only on the basis of race, color, creed, national origin, sex, marital status, or age. (b) (1) A licensee is not in violation of this section if the licensee is in compliance with the federal Equal Credit Opportunity Act […]
Section 12-306 – Interest on Loan
(a) (1) Except as provided in subsections (b) and (c) of this section, a lender may charge interest on a loan at a rate not more than the rates specified in this subsection. (2) For any loan with an original principal balance of $2,000 or less, the maximum interest rate is: (i) 2.75 percent interest per month on that […]