Your Protection under Federal Law If you believe a lender has violated the Maryland Generally, the Federal Truth and Lending Act treats Consumer Law, fi le a complaint with the Offi ce payday like other types of : of the Commissioner of Financial Regulation. • The lender must disclose the cost of the loan “PAYDAY” LOANS • The lender must disclose the fi nance charge (a CONSUMER SERVICES UNIT: dollar amount) 410-230-6077 or toll free 888-784-0136 • The lender must disclose the (APR- the cost of the credit on a yearly basis) To submit an inquiry or complaint, visit: • The lender must put these and other terms of the labor.maryland.gov/fi nance/consumers/ loan in writing before you sign for the loan paydayloans.shtml If you believe a lender has violated the Truth in What You Lending Act, fi le a complaint with the Federal MARYLAND DEPARTMENT OF LABOR Trade Commission toll free, 1-877-FTC-HELP/ 1-877-382-4357 or use the complaint form at Offi ce of the Commissioner of Financial Regulation Need to Know www.ftc.gov. Maryland Department of Labor as a Maryland 500 N. Calvert Street, Suite 402, Baltimore, MD 21202 You can also submit a complaint with the Main Phone: 410-230-6100 Consumer Consumer Financial Protection Bureau (CFPB) General Email: [email protected] at www.consumerfi nance.gov/complaint/ or /MarylandLabor | Twitter @MD_LABOR by calling 1-855-411-CFPB (2372). Website: labor.maryland.gov/fi nance

Larry Hogan, Governor OFFICE OF THE COMMISSIONER Boyd K. Rutherford, Lt. Governor OF FINANCIAL REGULATION Tiffany P. Robinson, Secretary Antonio P. Salazar, Commissioner Maryland Department of Labor

Revised 06/2020 Think carefully about the consumer loans you may take.

What is a Your Protection under MD Law Suggestions to Avoid Needing “PAYDAY” a Payday Loan Under Maryland law, MOST lenders are required Loan? to be licensed by the Commissioner of Financial Before you are late in making a bill payment, speak Regulation. rates are restricted depending with your creditor and ask about making payment on the loan size. arrangements if you know you are falling behind. If A payday loan is a term used to describe a short- you are in , a debt management services (“DMS”) term, high-interest loan, sometimes referred to as a Subject to certain exceptions, under Maryland law, a provider may be able to to help by negotiating with “”, regardless of whether payment of person is prohibited from lending $25,000 or less creditors on your behalf. the loan is linked to a borrower’s payday. The high if the person charges or receives a greater rate cost of these short-term loans can sometimes trap of interest than authorized by the laws of this State There are a number of assistance programs consumers into a cycle of debt. These loans are (see Md.Code Ann., Com. Law II §12-314). available to help families make ends meet in a crisis. advertised through the radio, television, the internet, Available state programs can be found by visiting and direct mail. Something as simple as cashing a post-dated check www.benefi ts.gov. can be a loan under Maryland law (see Md. Code Businesses that offer payday loans suggest that these Ann., Fin. Inst. §12-102(b)). The high cost of payday loans can eat away at your loans assist consumers with: paychecks and make it likely you will need to borrow • Temporary cash needs FIRST $1,000 OF A LOAN $2,000 OR LESS: again. Tips to fi nding less expensive money include • Financial emergencies Maximum allowed by law is 2.75 percent shopping for a credit offer with the lowest cost and • Short-term borrowing needs per month or an annual interest rate of 33 percent. considering a small loan from a or your local . NEXT $1,000 OF A $2,000 LOAN: Maximum interest rate allowed by law is 2 percent per month or an annual interest rate of 24 percent.

LOANS GREATER THAN $2,000: For loans greater than $2,000, the maximum interest rate allowed by law is 2 percent per month or an annual interest rate of 24 percent on the entire amount of the loan.