Maryland Usury Laws
Maryland has one of the most complicated (if not convoluted) laws governing usury and usurious interest rates to be found anywhere in the United States. In fact, many legal experts have described the law in Maryland governing usury to be significantly nuanced.
With this in mind, while you are provided with general information about the usury laws in Maryland today, if you have specific questions governing these laws, it is important for you to obtain legal advice and assistance. A qualified lawyer will be able to assist you in better understanding the statutes and regulations that are in force in Maryland governing usury and usurious lending practices.
First of all, in Maryland, the state has established a legal interest rate of 6% on most personal loans and on many other types of financing. However, with that noted, there are innumerable instances in which lenders can and do charge interest rates above and beyond the 6% level. For examples, there are many instances in which personal loans are involved that allow for higher interest rates.
When it comes to personal loans generally in Maryland the general usury limit is set at 24%. Therefore, it is possible for there to be personal loan agreements that carry interest rates between 6% and 24%.
On the other hand, there is a separate scheme when it comes to interest rates associated with judgments in civil actions. The interest rates associated with judgments in civil suits is set by statute at 10%.
If there is a contract for the sale of goods with financing involved, there is a separate statutory scheme governing the interest rate that is permitted in such instances.
The statutes and regulations governing interest rates on personal loans and usury limitations can be found in the Maryland Code, consumer transactions section. There are other statutory provisions on the books in Maryland that deal with the interest rates on other types of loan and financing transactions.
If you find that you have any questions pertaining to the complicated usury laws in Maryland, you really should seek legal assistance (as was mentioned previously). Additionally, while we make every effort to keep the information contained in this article current, the usury and related laws in Maryland do change from time to time. Therefore, we cannot absolutely guarantee the currency of the information contained in this informational article.