Getting a payday loan in Maryland. A small guide on how to do it!
We can all find ourselves in a situation when we immediately need money; no matter if it’s an emergency or if something happens with your home, with your car or if it’s health related. Although most of us try to save up when we can, some costs may exceed our monthly budget. And that’s exactly when we may need to get an insta-loan which is mainly called as a payday loan. As of today, the payday loan in Maryland is available to all those who suit the below description:
• Above the legal age of 18
• Holds a proper job and gets a proper (weekly, bi-weekly or monthly) salary
• Has a bank account
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While banks offer various sorts of credits and credit cards, there are situations when someone cannot obtain one of these simply because they either do not want to sign a contract that may have the durability of years, the sum is too small to ask a credit card for or if someone has a bad credit which blacklists them from any sort of bank credits.
The system of payday loan is however not as transparent as it is for a bank credit. These sort of insta-loans are normally provided by independent companies or pawn companies who may abuse the creditor’s situation and ask for sky –high interests in return.
That’s why most states have put various laws and regulations in action which either ban or limit the rights of loan companies to keep them from charging unreasonable costs. Let’s see what the payday loan situation is in Maryland.
What are the payday loan laws and regulations in Maryland ?
According to Maryland Consumer Loan Act Md. Code Com. Law § 12-101 et seq. Payday loan as such is prohibited to obtain or to provide within the area of the state. However there is a way to obtain a loan of a similar type. This is called Small Loan and it works very much like Payday Loan system does in other states. Small Loans and other sorts of pawns, credits fall under the regulation of the Maryland Commissioner of Financial Regulation. Contact your bank or other credit institutes to learn about official bank credit possibilities for small term credit options.
How much can you be charged by a payday lender in Maryland?
The Small Loan has a rate cap of 2, 75% / month that equals 33% for a year Other credit rates are always subject to banking regulations and they may differ from bank to bank.
Your rights as a borrower in MD
Payday loans were always prohibited within the state. However pawn regulations (giving or lending money in return for a valuable object of any sort) may be different. Although internet payday loan lending is not yet as regulated, we would suggest all borrowers to be extremely cautious with online payday loan sites, particularly if they live in a state that prohibits such loans.