Payday loans in Maryland
In Maryland, payday loans are effectively banned since consumer loans of $25,000 or less require a licensed lender and must follow the Consumer Loan Law limits of 2.75% monthly (33% yearly) for small loans.
- Payday lending
- Banned
- Max cost
- On the first $1,000, the rate is 2.75% monthly, or about 33% APR.
- Top amount
- None allowed
Are payday loans legal in Maryland?
No, the Maryland Consumer Loan Law effectively bans payday loans in Maryland. To offer a consumer loan of $25,000 or less, a lender must hold a license from the Commissioner of Financial Regulation. For loans of $2,000 or less, interest is capped at 2.75 percent monthly on the first $1,000, plus two percent on the remainder. This maximum rate amounts to 33 percent annually. In dollar terms, you may be charged only $1.27 per $100 borrowed for a 14-day period.
Loans of $25,000 or less in Maryland are void when they exceed the rate cap or come from a lender without a license. Enforcement is not possible for a void loan. Nobody is allowed to collect or keep fees, interest, or even the principal, the amount you originally took out. This rule also applies to out-of-state online lenders if your application begins in Maryland. If you want to verify a lender's license, you can look in NMLS Consumer Access; complaints can go to the Maryland Office of Financial Regulation.
- There is no payday statute in Maryland, and every consumer loan up to $25,000 is capped at 2.75% monthly (33% per year) on a small loan's first $1,000.
- If a loan of $25,000 or less exceeds the allowed rate or comes from a lender without a license, it is void, and the lender cannot keep even the principal.
- Small loans violating the federal Military Lending Act are also voided by Maryland.
- One of the first states to dispute Western Sky's tribal immunity claim, Maryland served a stop order in February 2011 and later reached a settlement of about $2 million.
- Certain earned wage access products became subject to the Maryland Consumer Loan Law under Chapter 847 of 2025 (HB 1294), which took effect October 1, 2025.
Maryland payday loan laws
- Law in force
- Maryland Consumer Loan Law (Commercial Law Title 12, Subtitle 3)
- Cited as
- Md. Code, Com. Law §§ 12-306, 12-314
- Fees under the law
- When a loan's original principal balance is $2,000 or less, monthly interest runs 2.75 percent on the first $1,000 of unpaid principal balance and 2 percent on any unpaid principal balance over $1,000
- Installment lending limits
- Consumer Loan Law (Com. Law 12-306(a)(6)): a loan up to $2,000 is charged 2.75% monthly on the first $1,000 plus 2% monthly on what remains, and a loan over $2,000 is charged 2% monthly on the whole balance
Also checked against labor.maryland.gov. Full statute text.
Online lenders that list Maryland
Four companies we track say they lend in Maryland: 3 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Maryland
Maryland voids every loan of $25,000 or less when the lender is unlicensed or the rate breaks the state's caps, and no one may keep the principal, interest or fees on it. This rule reaches out-of-state lenders when the application began in Maryland. In February 2011 the Commissioner ordered Western Sky, a tribal-linked online lender, to stop lending.
On the immunity claim tribal lenders make, see are tribal loans legal.
Three tribal lenders we track list Maryland as a state they lend in. One of the three publishes an APR: 325% to 725%.
| Lender | Posted APR |
|---|---|
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
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Lender cases and orders in Maryland
- 2025 · City of BaltimoreMoneyLion: Baltimore sued MoneyLion because Instacash tips and fees allegedly exceed Maryland's 33% APR cap and involve deceptive marketing; we could not confirm how it ended. Source
- 2022 · Maryland Commissioner of Financial RegulationAmerican Web Loan: The final order held that AWL had not proven tribal immunity and ordered it to stop making unlicensed loans to Maryland residents. Source
- 2022 · US District Court, District of MarylandMaxLend: The case named Manago v. Cane Bay Partners: borrowers sued MaxLend's alleged operators and tribal officials in a RICO and usury class action over its loans, which was dismissed in 2022. Source
Maryland and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Maryland | Banned | On the first $1,000, the rate is 2.75% monthly, or about 33% APR. | None allowed |
| Delaware | Allowed | None in the law | $1,000 (a loan of $1,000 or less qualifies as a short-term consumer loan) |
| Pennsylvania | Banned | None in the law | None allowed |
| Virginia | Only as installments | None in the law | $2,500 |
| Washington DC | Banned | 24% APR | None allowed |
| West Virginia | Banned | None in the law | None allowed |
Maryland loans with no credit check
Installment loan rates: Consumer Loan Law (Com. Law 12-306(a)(6)): a loan up to $2,000 is charged 2.75% monthly on the first $1,000 plus 2% monthly on what remains, and a loan over $2,000 is charged 2% monthly on the whole balance.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Maryland
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Maryland Office of Financial Regulation (Commissioner of Financial Regulation, Maryland Department of Labor).
- Had trouble with a lender? Report the lender.
Sources for Maryland
- A license from the Commissioner of Financial Regulation is required for most consumer lenders.; For loans up to $2,000, the monthly limit on the first $1,000 is 2.75%, equaling 33% yearly.labor.maryland.gov
- The law sets a 2.75% monthly rate on the first $1,000 of loans up to $2,000, plus 2% a month on the rest.; Any loan over $2,000 has a monthly limit of 2% on the entire amount.mgaleg.maryland.gov
- Violating licensing rules, the Military Lending Act, or rate limits makes a small loan void and unenforceable.; For loans of $25,000 or less, lending that breaks the federal Military Lending Act is prohibited.; Principal, interest or fees cannot be kept by anyone if the loan is void.mgaleg.maryland.gov
- If an unlicensed person acquires a consumer loan, it cannot be enforced.labor.maryland.gov
- In February 2011, the Commissioner ordered Western Sky to stop via a cease and desist order.; Western Sky was challenged by Maryland, one of the first states to target that reservation-based lender.; About $2 million was the estimated value of the Western Sky and CashCall settlement.labor.maryland.gov
- Through NMLS Consumer Access, verification is possible for any consumer or installment lender holding a license from the Commissioner.labor.maryland.gov
- Consumers may file complaints with the Office of Financial Regulation.labor.maryland.gov
- Certain earned wage access products came under the Consumer Loan Law via HB 1294 (2025).; Chapter 847 of 2025 is what HB 1294 became.; October 1, 2025 was when HB 1294 took effect.mgaleg.maryland.gov