First and foremost, Maryland payday loans are illegal. This has not stopped payday loan companies to operate in Maryland, but they have no power to collect anything but he principal of the loan borrowed. No interest or later payments, no threat of court action.
But! Yes, there is always a but it seems. By renaming these loans as consolidation loans and such they become legal operators. You can still get caught up in these loans and will be responsible for all charges and interest associated with these re named loans.
After reading these rules I almost wish these loans were legal. A loan company can charge up to 33% per loan under $6000.00 and they can set the payment length on the loan to whatever the customer agrees to.
Not a good setup at all. Since payday loans are illegal per say, there are no limits written on roll overs and this could lead to a payday loan mess by no other name. You could get yourself in trouble with too many loans and too much debt, without the ability to make the payments.
One must be very careful getting roped into a long term loan you do not need and want. It is so easy to take the money and worry about the payments later, but this always comes back to haunt you.
If you find you have gotten yourself into too much debt and do not know how to handle it, it is time to take a big breath and regroup. There is plenty of help available at the click of a mouse and before you know it you have relief from payday debt and you have some room to plan out of your pay checks.
Do some research on how to consolidate your payday loan debt into one simple bi weekly or monthly payment and get some relief you deserve!
You can find help by using a payday loan consolidation company . Look for one that works with you one on one and treats your loan like their own. Be careful not to get trapped with a company that holds your money up to 3 months before they start making payments for you. There are good ones available, you just have to look for them.
I hope this article on the state of Maryland payday loan laws will help you in dealing with these companies, and if you are in trouble, look into the suggestion of consolidation options.
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