Maryland Debt Collection Lawyer: Maximum Interest Rate
For consumer products, the Maximum simple interest rate is: 24% per year. CL § 12-1003.
Lenders can charge a Variable rate: The interest rate may vary in accordance with an index or formula that is made readily available to the borrower and is beyond the control of the creditor.
Pay day lenders online or otherwise have being accused of charging as much as 782% in interest which would violate the allowable rates in most states. If you are the victim of such a loan, you may have recourse. Lenders who violate the interest rate can be subject to penalties including the inability to collect on the debt and damages to be paid to the victim. For example, the attorney general for New York was able to stop the repossession of vehicles due to illegal title loans. Consult a knowledgeable debt collection lawyer for advice on your specific situation.