Maryland is one of three states (Georgian and Massachusetts are the others) that not only prohibit payday lending in state law, but also have laws that prohibit local banks from partnering with out of state agencies to offer their customers payday loans.

The small loan rate cap is set at 2.75% monthly and 33% annually (APR). 

Maryland Payday Loans requires payday lenders to comply with the state’s small loan or criminal usury laws. Basically, since the allowable interest rates and fees are much lower than what the payday industry usually charges, payday lenders in these states are operating illegally.

Any Payday loan lenders doing business in Maryland are required to register with the Commissioner of Financial Regulation and be in compliance with the State of Maryland before lending or collecting any money.